會計資訊角色的演變 國立中興大學會計學研究所 陳育成

Role of Accounting Information ⊙ Stewardship Perspective ⊙ Informational Perspective Market-based Research Positive accounting

Stewardship Perspective  Basic Assumption:  Accounting Earnings = Economic Earnings  Firm’s intrinsic value could be calculated from F/S  Methodology: Deductive  Main Contribution: GAAP

Informational Perspective  Basic Assumption: F/S data facilitate decision makers and contracting between parties. (informational roles)  Methodology: Inductive  Topics:  Reaction of F/S user  Benefit v.s. Cost of Accounting Information

Informational Perspective- Market-based Research Capital asset pricing model, CAPM Efficient Market Hypothesis, EMH Modern portfolio theory

Type of Market-based research Market-based research For example: Tests of EMH v.s. Mechanistic Hypothesis Kaplan & Roll, 1972 Ball, 1972 Sunder, 1973, 1975

Extension of Mechanistic Hypothesis 1.Functional fixation hypothesis 2.Extended Functional fixation hypothesis(Hand,1990)

Market-based research Tests of information content of A/C alternatives (Beaver and Dukes,1972) Tests of earnings/return relationship (ERC research, good news/bad news testing….)

Ball and Brown (1968) They found a significant association between the sign of the price changes and the sign of the earnings changes. Implications Timeliness of Annual report Annual report is not the sole source of information available to the market

Earning vs. Return Relationship Research design issues  Accounting variable selection why R 2 usually less than 5% (Lev,1989)  Short window or long window

Accounting variable selection 1)Earnings quality problem 2)Lack of theoretical framework 3)Bottom line or components of Earnings/Cash Flow (Lipe, 1986; Livnat and Zarowin, 1990)

Market Anomalies 1.January Effect 2.Monday Effect 3.Size Effect 4.Price/Earnings Ratio 5.Postannouncement Drift 6.The Briloff Effect 7.Value Line (it beat the market ？ )

Positive Accounting Research Watts and Zimmerman (1986) develop in depth the notion that many of the firm’s contracts are defined in terms of financial reporting data. 1.Bonus 1.Bonus Hypothesis 2.Debt Covenant 2.Debt Covenant Hypothesis 3.Political Cost 3.Political Cost Hypothesis Evidence: Zmijiewski and Hagerman (1981)

Summary 1.The relationship between capital market and Accounting information is not knee-jerk fashion.(but what else ？ industry ？ non-accounting information ？ ) 2.What model analyst use ？ (Value Line) 3.Positive Accounting Theory provides a basis for understanding why management regard the choice of accounting method as a substantive issue. 4.Classical theory still play important roll(Ou and Penman,1989 、 Ou,1990)