Timeliness and Conservatism of Taiwanese Earnings

Asia-Pacific Journal of Accounting & Economics, Vol. 12, No. 2, 2005

Posted: 26 Apr 2014

See all articles by Sudipta Basu

Sudipta Basu

Temple University - Department of Accounting

Date Written: December 2005

Abstract

Taiwan is an economy with an efficient stock market where accounting and auditing standards generally follow the US. However, a culturally different climate is caused by the predominance of family-owned public companies. We find Taiwanese firms' earnings exhibit the conservatism and timeliness of Asian economies where US GAAP is not used. Further tests show that family-controlled firms (typical of the Asian business model) exhibit less conservatism in their application of GAAP. This suggests limitations in the harmonization of accounting standards in those economies that have strong family influence in publicly traded firms.

Keywords: shareholder lawsuits, ownership structure, enforcement, ownership, control

JEL Classification: M41

Suggested Citation

Basu, Sudipta, Timeliness and Conservatism of Taiwanese Earnings (December 2005). Asia-Pacific Journal of Accounting & Economics, Vol. 12, No. 2, 2005. Available at SSRN: https://ssrn.com/abstract=2429017

Sudipta Basu (Contact Author)

Temple University - Department of Accounting ( email )

Philadelphia, PA 19122
United States
215.204.0489 (Phone)
215.204.5587 (Fax)

Register to save articles to
your library

Register

Paper statistics

Abstract Views
285
PlumX Metrics