A Study on Fat Cat Companies’ Market Valuation and Subsequent Accounting Performance

• Main Author: 梁匯榛
• Other Authors: 蔡柳卿
• Format: Others
• Language: zh-TW
• Online Access: http://ndltd.ncl.edu.tw/handle/q3393f

碩士 === 國立嘉義大學 === 管院碩士在職專班 === 105 === In order to alert stakeholders to the potential agency problem of fat cat firms that suffer from operating loss but continue to increase compensation for directors and supervisors, the Market Observation Post System has publicly disclosed these firms to raise the public’s attention. Focusing on fat cat firms, this study aims to examine their market valuation and subsequent accounting performance. Using a sample composed of fat cat firms listed on the Market Observation Post System over the period of 2013-2014, and the matched “non-fat cat” firms, empirical analyses obtain the results as follows. 1. The market has poor valuation for fat- cat firms relative to non-fat cat firms, and there is no different valuation between TSE and OTC fat-cat firms. 2. Investors have more negative valuation on those fat cat firms which have higher growth opportunities. 3. Fat cat firms have poor subsequent accounting performance than non-fat cat ones, and the higher growth opportunities the fat-cat firms own, the poor subsequent accounting performance they have.