Reviewing Window Dressing Indicators:Using Tatung Company as an Example

• Main Authors: Chen-YuLin, 林宸聿
• Other Authors: Hsuan-Chu Lin
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/35046271818474739399

碩士 === 國立成功大學 === 財務金融研究所在職專班 === 101 === It is generally believed that the painful experiences from past should be good lessons learned. However, the misappropriation cases continuously occurred in the business history do not seem to support this general belief. Therefore, the question we should ask is: are the nonstop occurrences of misappropriation cases due to the innovation for window dressing skills or due to our reluctance to learn? The main purpose of this study is to explore this question by reviewing the window dressing indicators proposed by prior studies. In this study, I first list the window dressing indicators suggested by prior studies and categorized them into two parts: financial ratios and non-financial ratios. Next, I check the reliability of these measures by examining the three lately well-known criminatory misappropriation cases in the late Taiwan business history and obtain the most reliable measures to further examine my research target, Tatung Company, a public listed company which is currently under the lawsuit of its possible misappropriation. My analysis result shows that the proposed measures, either financial ratios and non-financial ratios, which are more like Monday morning quarterback, are very helpful on detecting corporations’ misappropriation activities. My suggestion is that how to alleviate the asymmetric information problems between the companies’ insiders and investors through more disclosures in financial statements is probably a more help way to prevent the future possible misappropriation disasters.