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|Other Titles:||Investigating Net Purchases Accompanying Unexpected Investment Income of Taiwan’s Companies|
Lin, Hsiou-Wei William;Syu, Yir-Jung Emily;Yu, Cheng-Wen
Investment income;Net purchases
|Issue Date:||2016-05-31 16:51:44 (UTC+8)|
Consistent with the prevelance of firms’ investment in South East Asia and Mainland China, Taiwan’s companies differ significantly from foreign firms in both magnitude and persistence of investment income. This study explores the difference in net purchases triggered by unexpected investment income, which is a non-operating item in financial reporting. It shows that, despite the fact that investment income is value relevant, foreign investors, as compared with the other investors, appear to under-react to investment income reported by Taiwan’s companies due to unfamiliarity of cross-holding activities prevalent in this market. Our results support the notion of investors’ bias in analyzing investment targets in foreign markets. The paper also documents a less pronounced net purchase response to unexpected investment income for foreign investors during the boom regimes and vise versa.
International Journal of Accounting Studies
|Appears in Collections:||[會計評論] 期刊論文|
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