臺大管理論叢 NTU Management Review VOL.30 NO.2

321 NTU Management Review Vol. 30 No. 2 Aug. 2020 substantially converged its accounting standards with IFRS and adopted IAS 40 investment property with some changes. This study focuses on the real estate industry because firms in this industry have a significant amount of investment properties. The data on whether the fair value model or the historical cost model is used by real estate firms are hand-collected from financial reports and the financial data is collected from the Taiwan Economic Journal (TEJ) database. To mitigate the effects of outliers on findings, this study uses the winsorization of all variables, except for dummy variables, at the top and bottom 1%. Approximately 10% of the sample firms use the fair value model, with the remainder using the historical cost model. 5. Empirical Results 5.1 Descriptive Statistics Table 1 reports the descriptive statistics of the full sample of this study. The mean (median) of current year investment properties under the fair value model scaled by total assets, IP*D_FV , is 0.018 (0.000). This suggests that most of the real estate firms use the cost model to measure their investment properties. The mean (median) of income before taxes scaled by beginning total assets, IN, in year t+1 , t+2 , and t+3 are 0.068 (0.053), 0.077 (0.056), and 0.107 (0.074), respectively. The mean of state-owned shares ( STATE ) is 0.155. The mean of accumulated changes in the fair value of investment properties scaled Table 1 Descriptive Statistics (N=340) Variable Name Mean Median Max Min Std. Dev. IN t 0.053 0.045 0.372 -0.081 0.052 IN t+1 0.068 0.053 1.255 -0.067 0.123 IN t+2 0.077 0.056 1.219 -0.060 0.131 IN t+3 0.107 0.074 1.630 -0.091 0.181 IP 0.107 0.065 0.869 0.001 0.145 IP*D_FV 0.018 0.000 0.706 0.000 0.089 SIZE 6.700 6.709 8.110 5.647 0.524 MB 3.662 2.809 17.656 0.903 2.828 LEV 0.594 0.625 0.939 0.143 0.155 STATE 0.155 0.000 0.798 0.000 0.233 SUM_FV 0.002 0.000 0.484 -0.004 0.026 APP 0.035 0.000 1.000 0.000 0.184 Note: All variables are as described in Appendix A.