The Value Relevance of the Accounting Exposure - Examples of Taiwan-listed Company

• Main Authors: Kuo-Ming Huang, 黃國銘
• Other Authors: Tsung-Wu Ho
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/92207628734138412327

碩士 === 世新大學 === 財務金融學研究所(含碩專班) === 98 === This study used a fixed effects model to look whether "accounting exposure" is value relevance. Study found that accounting exposure for investors is not value relevance. This conclusion is consistent with the academic contention and support current standpoint of Financial Accounting Standards in Taiwan that do not need to present "comprehensive income" in financial statement. In addition, according to Louis’ view that presents an economic analysis of the accounting exposure, this study follows Louis’s trail that cluster the data by labor cost. Empirical results do not support the point that labor cost is the key influence to foreign currency translation adjustment. So the way of economic analysis of the accounting exposure must be interpreted with caution. In other words, there is still difference between economic exposure and accounting exposure.