The Effect of the Adoption of Statement of Taiwan's Financial Accounting Standard No.34, 36 on Corporation's Use of the Derivative Financial Instruments

李合龍(He-Lung Li) ； 劉錦花(Flower Liou)

《企業管理學報》 79期 (2008/12) Pp. 55-79

並列摘要

The main purpose of this study is to test whether after the adoption of the statement of Taiwan's financial accounting standard (STFAS) No.3 4, 36 will influence the enterprise's use of the derivatives. This paper selected samples from Taiwan's publicly listed companies from year 2004 to 2006 with annual report as the sample. According to these three years' financial reports, including the income statement, balance sheet, statement of cash flow, and all related footnotes disclosures etc., we select the relevant independent variable and dependent variable, and using logistic regression analysis to carry on a substantial evidence examination. Because the adoption of the STFAS, No.34, 36 begins in 2006, so we test not only two years 2005 and 2006, but also including those 2004 and 2005. If the degree of the use of the derivatives at year 2004-2005 are not decreasing apparently, instead, year 2005-2006 are significant decreasing. Then, we can conclude that the STFAS, No.34, 36 can significantly influence the use of the firm's derivatives. we find that the p-values of the dummy variable in equations A1 and A2 are all less than 0.05. But equation A3, the p-value of the dummy variable is more than 0.05. In equation A1, owing to the p value is less than 0.05, prior to the adoption of the STFAS, No.34, 36, the mechanism of the corporate governance has significant effect on the degree of the use of the derivatives. But the coefficient β 1 of the dummy variable is positive, it means the degree of the firm's use of the derivatives in year 2005 is obviously more than that in 2004. In equation A2 the coefficient β 1 of the dummy variable is negative and its p-value is less than 0.05, it reveals that the degree of the use of the firm's derivatives in The Effect of the Adoption of Statement of Taiwan's Financial Accounting Standard No.34, 36 on Corporation's Use of the Derivative Financial Instruments 57 year 2006 is significantly less than that in 2005. It means that the adoption of STFAS No.34, 36 can obviously impact on the use of the firm's derivatives. However, in equation A3, although the coefficient β 1 of the dummy variable is positive, the p-value is more than 0.05. It means that the degree of the use of the firm's derivatives in year 2006 is not significantly more than that in 2004.

並列關鍵字

Derivative Financial Instruments ； Corporate Governance ； Smoothing

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