The Effects of Opening Undistributed Earnings of First-time IFRS Adoption on the Dividend Policy during the Transitional Period

• Main Authors: LIN,KU-FENG, 林谷峰
• Other Authors: CHANG, CONRAD-C.
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/32501368535258854450

碩士 === 國立臺北大學 === 會計學系 === 102 === Taiwan has started to adopt International Financial Reporting Standards (IFRS) since 2013. As the opening undistributed earnings of an entity may increase or decrease on account of the first-time adoption of the IFRS, the management may consider to increase or decrease dividend distribution for the transitional year (2012). This study is to examine the effect of increase or decrease of undistributed earnings, and appropriation of special reserve such as unrealized revaluation increments or cumulative translation adjustment on the dividend policy for the year of 2012. This study employs Taiwanese non-financial listed companies from 2010-2012 as the sample. The increase or decrease of undistributed earnings is measured by the difference between IFRS undistributed earnings and ROC GAAP undistributed earnings. The multivariate regression analysis is applied for this empirical study. The evidence shows that the increase or decrease of undistributed earnings due to the first-time adoption of IFRS of Taiwanese listed companies did not significantly change the dividend distribution during the transitional period, and the appropriation of special reserve by unrealized revaluation increments or cumulative translation adjustment even decreased the dividend distribution during the transitional period.