The Effect of Capital Adequacy Regulation on the Accounting Classification Decisions of Financial Assets for Taiwans' Commercial Banks.

• Main Authors: Wen-Ting Shiue, 薛雯婷
• Other Authors: Jia-Xun Jiang
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/41220082377127887202

碩士 === 輔仁大學 === 會計學系碩士班 === 97 === This thesis examines whether the capital adequacy regulation imposing on commercial banks affects the accounting classification decisions of financial asset, using a sample selected from Taiwan public commercial banks during the period from 2005 to 2007. The main findings are as follows： I. After the implementation of Taiwan’s SFAS No. 34, those commercial banks with lower capital adequacy ratio were less likely to classify their financial assets as available-for-sale relative to other accepted classifications under GAAP. II. The positive association between capital adequacy ratio and the proportion of financial assets classified as available-for-sale was more prominent during the fiscal year 2007, the first year of implementation of Basel Ⅱ, relative other sample periods when Basel I was effective . Overall, this thesis supports the conjecture that the capital adequacy regulation does affect the accounting decisions about financial asset classification due to the high cost of violating the requirement of minimum capital adequacy ratio.