The Effects of Fair Value Accounting on Financial Transparency: Evidence from Analysts' Earnings Forecast Errors
碩士 === 國立中正大學 === 財務金融研究所 === 99 === he purpose of this thesis is to investigate the impact of the adoption of Taiwan’s Statement of Financial Accounting Standards No.34 (for financial instruments’ recognition and measurement, SFAS 34) on transparency of financial statement at January 1, 2006. SFAS...
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| Format: | Others |
| Language: | zh-TW |
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2011
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| Online Access: | http://ndltd.ncl.edu.tw/handle/23130286445364036325 |
| Summary: | 碩士 === 國立中正大學 === 財務金融研究所 === 99 === he purpose of this thesis is to investigate the impact of the adoption of Taiwan’s Statement of Financial Accounting Standards No.34 (for financial instruments’ recognition and measurement, SFAS 34) on transparency of financial statement at January 1, 2006. SFAS 34 identifies the classification of financial instruments in detail and requires enterprises not only to disclose but also to recognize the financial instruments in fair value. These reforms are aim at enhancing the transparency of financial statements. This thesis employs analyst earnings forecast errors as the proxy of the information transparency and collects all the companies listed in Taiwan Stock Exchange and OTC from 2003 to 2008. We inspect whether fair value accounting application is negatively associated with analyst earnings forecast errors and further examine the impact of the categorization of fair value measurements on analyst earnings forecast errors after SFAS 34 adoption, referred to the approaches used by Song et al. (2009) and FAS 157.
The findings reveal that the adoption of SFAS 34 provides more useful information to analysts in forecasting earnings, thereby reducing the analysts’ forecast errors. However, we cannot find statistically significant relationship between the information of fair value hierarchy and the analyst earnings forecast errors. That indicates the measurements of fair value for the financial instruments are not the tools that companies used to do earnings management.
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