In this paper, we investigate the relationship between volatility of and liquidity provision through the aggregation of high-frequency data on the stock index option markets of Taiwan. Strong evidence shows the different behaviors of liquidity supply for market makers and nonmarket makers. In...

Corporate managers make several discretionary assumptions (i.e., the rate of salary growth and assumed return rate of pension plan assets) in calculating the fair value of pension assets and value of pension liabilities. In this study, we examine the factors that can induce managers to increase...

In this paper, we investigate the determinants of daily short selling activity for retail and foreign institutions and their impacts on stock returns, volatility and liquidity in the Taiwan stock markets. By using two metrics to measure the short selling activity for two investor types, we find...

The Financial Accounting Standards Board (FASB) released a revised version of Statement of Financial Accounting Standards No. 141 (SFAS No. 141(R)) in December 2007. Accounting treatments of acquired in-process research and development (IPR&D) in a business combination change from expensing to...

This paper examines whether the reversal of a previously recognized impairment loss provides an opportunity for earnings management, and whether such behavior is associated with managers' incentives. It also examines whether a corporate-governance mechanism can mitigate this behavior. Since...

Purpose – The purpose of this paper is to investigate the policy consequences of expensing stock-based compensation in Taiwan. Design/methodology/approach – Data were collected on listed firms from 2006 to 2008 and a goodness-of-fit of accounting earnings valuation model was used to...

Taiwan’s financial accounting regulatory amendment directions shift the framework from the U.S. GAAP-based to International Financial Reporting Standards (IFRS)-based to accelerate the pace of progress towards convergence with IFRS. In the amendment process, the converge outcomes of earnings...