| Summary: | 碩士 === 國立高雄應用科技大學 === 財富與稅務管理研究所碩士在職專班 === 101 === This research investigates the effect of earnings informativeness caused by CFA firms’ reputation. Also, the aim of research is to demonstrate whether the decreasing earnings information and earning informativeness increased by income smoothing because of accounting firms that lost reputation by corporate scandals. This sample is domestic companies on list and OTC-list from 2003 to 2006, and the total is 2,350.
The empirical result obtained in this study has demonstrated that current and future earnings informativeness is improved by CFA firms’ reputation; also current earning informativeness is increased by income smoothing. Consequently, CFA firms’ reputation makes investors get more future earnings information. In addition, this research demonstrates the CFA firms’ reputation was damaged by corporate scandals. Corporate scandals also influence future earnings information of companies on audit. Meanwhile, it cause that share price could not represent enterprises' future earnings informativeness. As a result, this research examine that income smoothing improve future earnings informativeness will be decreased when CFA firms which have punished. The most important is that the big CFA firms which don't have punished by corporate scandals could increase the quality of earnings information.
|
|---|
