TranThiThuTram TV pdf Market Liquidity And Transparency Under IFRS Convergence MINGHSIN UNIVERSITY OF SCIENCE AND TECHNOLOGY INSTITUTE OF MANAGEMENT A THESIS FOR THE MASTER DEGREE Market Liquidity And[.]
ܴ!ཥ!ࣽ!!מε!Ꮲ! ᆅࣴ܌ز ᅺγᏢՏፕЎ JGST ௗॉࡕϐѱࢬ܄ᆶၗૻܴࡋ Market Liquidity And Transparency Under IFRS Convergence ࣴزғ ;! ഋМࣿᘾ ! ࡰᏤ௲;! ݅లྻ ǵഋᘶ! ύ҇୯̿ΟԃϤД MINGHSIN UNIVERSITY OF SCIENCE AND TECHNOLOGY INSTITUTE OF MANAGEMENT A THESIS FOR THE MASTER DEGREE Market Liquidity And Transpare ncy Under The International Financial Reporting Standards Convergence Graduate Student: Tran Thi Thu Tram Advisors: Shu-Ying, Lin & Lii-Tarn, Chen Taiwan, June 2014 Abstract International Financial Reporting Standards (IFRS) is becoming a dominating accounting standards system all over the world Taiwan’s financial accounting regulatory amendment directions shift the framework from the U.S GAAP-based to IFRS to accelerate the pace of progress toward convergence with IFRS This research aims to examine whether or not the stock market liquidity can be improved due to the transparency of information in the period of convergence In the study, liquidity is proxied by variables including zero return days and Amihud Transparency is measured by different variables which are earnings management, Information Disclosure and Transparency Ranking System from Securities and Futures Institute, and foreign investor proportion Using the regression model on the 496 sample firms listed on Taiwan stock exchange for the period of years from 2005 to 2012, the empirical analysis indicates that there is a significant positivve relationship between transparency and liquidity, meaning that higher transparency, higher liquidity The outcomes also presents that the sensitivity of liquidity level to transparency is enhanced when it is approaching to the IFRS adoption time Keywords: Market Liquidity, Transparency, IFRS i Acknowledgement The final results and achievement of this thesis required a lot of guidance and assistance from many people and it was very fortunate for me to acquire this along fulfilling my thesis Whatever I have accomplished is only due to such guidance and assistance and I would not forget to thank them Firstly, I respect and thank Associate Professor Shu-Ying Lin and Associate Professor Lii- Tarn Chen for giving me an opportunity to this thesis work in Taiwan stock market and providing me all support, instruction which let me complete the thesis on time I am extremely grateful to them for providing such a nice support, guidance and inspiration, especially though they had busy working schedule Secondly, I would like to say thank to Assistant Professor Da-Ren Chen and Assistant Professor Pei-Fang Hsieh for giving me encouragements, suggestions, and guidance during this working process Moreover, I was very appreciative because of their attendance in my oral examination and giving me the best guidance Finally, I am thankful and fortunate to have constant encouragement and support from all lectures and staffs in Minghsin University of Science and Technology which helped me in successfully completing my thesis Thanks so much! ii Table of content Abstract i Acknowledge ment ii Table of content iii List of tables iv List of figures v CHAPTER 1: INTRODUCTION CHAPTER 2: LITERATURE REVIEW AND HYPOTHESES 2.1 IFRS: Background all over the world and in Taiwan 2.2 Liquidity and transparency CHAPTER 3: METHODOLOGY 13 3.1 Sample 13 3.2 Variables definition 13 3.2.1 Proxy for liquidity level .13 3.2.2 Proxy for transparency of information 14 3.2.3 Control variables 15 3.3 T-test 15 3.4 Regression models .16 CHAPTER 4: EMPIRICAL RESULTS 18 4.1 Descriptive statistics 18 4.2 T-test .20 4.3 Regression models 21 4.3.1 Liquidity and transparency 21 4.3.2 Liquidity and ownership concentration 29 CHAPTER 5: CONCLUSIONS 31 REFERENCES 32 iii List of tables Table 1: Descriptive Statistics 18 Table 2: Mean Difference Testing 20 Table 3: Liquidity and Earnings Management 22 Table 4: Liquidity for Different Industries 24 Table 5: Liquidity and earnings management for different industries 25 Table 6: Liquidity and IDTRS 26 Table 7: Liquidity and foreign investor proportion 29 Table 8: Liquidity and ownership concentration 30 iv List of figures Figure 1: Time series plot of liquidity’s measures and earnings management 19 Figure 2: Time series plot of foreign investor proportion 28 v