| dc.description.abstract | This thesis includes two studies. The first one is “The Study of the Relationships between Corporate Operating Policies, Diversification Strategies, and Asset Impairments in Taiwan.” The other is “The examination of the impact of Consumer Debt Negotiation Mechanism on the Financial Institutions in Taiwan.”
According to the Statement No. 35 issued by Taiwan’s Financial Accounting Standards Committee of the Accounting Research and Development Foundation in July 2004, firms in Taiwan must adopt Statement No. 35 and recognize assets impairment losses to conservatively reflect the true value of long-term assets. The regulations have great influences on the firms’ earning performances, so the extent of recognizing is closely related to corporate operating and diversification strategies. The results show that operating policies, including ownership structure, growth opportunities, operation performances, size of debt, and earning management incentives all have significant relationships with assets impairments. Besides, the industrial diversification significantly influences the extent of asset impairments. At last, sensitivity analyses show that the industrial effect disappears when taking the operating policies into consideration, and asset impairments do not cause earning managements through traditional ways.
Then, we use event studies and MVRM (Multivariate Regression Model) to examine the impact of Consumer Debt Negotiation Mechanism. We find that the events as a whole give a big shock to the financial institutions under different classification. The individual event makes both positive and negative impacts on the firms, but most of them are negative. The interesting results show that when the mechanism breaks down, it contrarily causes positive reactions in the stock market. Besides, financial holding companies suffer the biggest shock but have the strongest protecting power, and higher volume of credit card issued brings bigger shocks. At last, financial institutions with different characteristics suffer significantly different shocks. | en_US |