The Effects of Consolidated Financial Statements＇Position on Value Relevance
| Autor: | Ying-Shan Chen, 陳瑩珊 |
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| Rok vydání: | 2006 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 94 The main purpose of this study is to examine the effects of consolidated financial statements’ position on value relevance. This study uses the relation between earning components and stock prices to investigate the difference of value relevance between consolidated financial statements and parent company’s financial statements, and then discusses if the value relevance of consolidated financial statements is increased after SFAS NO.7 was amended. The empirical results are as follows. 1. In the whole sample, the relation between earning components and stock prices from consolidated financial statements isn’t obviously higher than those from parent company’s financial statements. Therefore, the whole sample is divided into two groups: the more important subsidiaries and the less important subsidiaries. The difference of explanatory power between consolidated financial statements and parent company’s financial statements from the more important subsidiaries is greater than those from the less important subsidiaries and the whole sample. It means that the more important subsidiaries the more informative the consolidated financial statements are. So it concludes that if the reader only emphasis on parent company’s financial statements, they easily lose more relevant information while valuing the companies whose subsidiaries are more important. 2. After SFAS NO.7 was amended, the relative relevance of consolidated financial statements from the more important subsidiaries and the whole sample are slightly over the past. Those from the less important subsidiaries are most unobvious over the past. In conclusion after SFAS NO.7 was amended, the relative relevance of consolidated financial statements isn’t much obvious higher over the past. The reason is inferred that the new combined entities of consolidated financial statements for Y2005-2Q consisted of small-scaled subsidiaries, whose contribution to the whole combined entities is very low. So After SFAS NO.7 was amended, the extent that the relative relevance of consolidated financial statements is promoted is limited. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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