EQUITY AGENCY COSTS AND INTERNATIONALIZATION: THE EFFECT OF REVISED ACCOUNTING STANDARDS IN TAIWAN

Yi-Chein Chiang and Hsin-Chiu Huang

The International Journal of Business and Finance Research, 2012, vol. 6, issue 2, 101-111

Abstract: This study investigates whether the equity agency problems of firms with foreign operations mitigate after 2005, when the revised accounting standards on consolidated financial statements were implemented in Taiwan. A sample of listed Taiwanese firms announcing security offerings from 2000 to 2008 were examined. The results weakly support the hypothesis that equity agency cost problems of Taiwanese multinational corporations improved after 2005. Thus, we suggest that the Taiwanese government further increase information transparency of multinational corporations in order to be consistent with International Accounting Standards and achieve lower equity agency costs.

Keywords: agency costs; consolidated financial statements; internationalization; information transparency (search for similar items in EconPapers)
JEL-codes: F23 G32 (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:ibf:ijbfre:v:6:y:2012:i:2:p:101-111

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