- 學位論文
The Effects of Information Quality, Related Party Transactions and Enterprise Resource Planning on the Informativeness of Stock Prices
The Effects of Information Quality, Related Party Transactions and Enterprise Resource Planning on the Informativeness of Stock Prices
並列摘要
With recent major financial fraud scandals in Taiwan, such as Procomp, Infodisk, Summit Computer, to name a few, investors are inclined to pay increasingly more importance to the related investment information in order to make better investment decisions. This study employs future earnings response coefficient methodology to investigate whether information quality, related party transactions and enterprise resource planning improve the informativeness of stock returns on future earnings in Taiwanese stocks market. From information quality perspective, the empirical results have indicated that information quality improves the correlation between current stock returns and future earnings. Investors show confidence in Big 4 accounting firms after the Procomp scandal in 2004. This further proves, after the Procomp, that the government has actively been amending stock exchange act and accounting regulations, and this has been quite effective to investors. In terms of related party transactions, it appeared that the less related party transactions, the greater stock price informativeness it has correlation with. The reaction of investors towards related party transactions doesn’t change whether the corporate governance mechanism is strong or weak. From enterprise resource planning perspective, this paper finds that firms with enterprise resource planning implementation are associated with stock prices that are more informative about future earnings. These results suggest that management should pay more attention to the disclosed information. Government agencies also better understand investors’ ability to forecast future earnings, in order to improve the effectiveness of resource planning and allocation.