The Market Reaction to IAS40 Adoption in Taiwanese Traditional Industries

• Main Authors: Su-hui Tsao, 曹素惠
• Other Authors: Chou, Shu-ching
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/96700642097019480326

碩士 === 國立雲林科技大學 === 財務金融系碩士班 === 100 === At August 11 of 2010, Clevo Co., announced that the company will adopt IAS 40 that uses fair value to evaluate firm investment asset. The early adoption of IAS is expected to enhance Clevo’s EPS from NT$ 13.07 to 65.22 and leads an increase of shareholders'' equity value about NT$33 billion. This study, by using Clevo’s announcement date as event day, is aimed to observe whether the early adoption of IAS40 affect stock return of other Taiwan traditional industries such as textile and food industries. The findings show that textile companies with higher assets have higher cumulative abnormal returns（4.2295% vs. 2.0487%）than those with low assets. Food companies with low assets have positive accumulated return. But this effect is not significant in firms with high asset. Overall, the results of this study found that investors of textile and food industries react positively to the early adoption of IAS40 by Clevo.