Page 153 - 臺大管理論叢第32卷第1期

NTU Management Review Vol. 32 No. 1 Apr. 2022

The Determinants of Voluntary Disclosure of Unaudited Earnings
by Listed Companies on the Market Observation Post System

Jan-Zan Lee, Department of Accountancy, National Taipei University
Hsiu-Mei Liao, Department of Accounting, Ming Chuan University
Hsin-Ping Ma, Sunrise CPA firm

1. Purpose/Objective

At the end of 2008, the Financial Supervisory Commission (FSC) designate Taiwan
Stock Exchange Corporation and Taipei Exchange to revised the “Taiwan Stock Exchange
Corporation Rules Governing Information Filing by Companies with TWSE Listed

Securities and Offshore Fund Institutions with TWSE Listed Offshore Exchange-Traded
Funds” and “Taipei Exchange Rules Governing Information Reporting by Companies with
TPEx Listed Securities,” respectively. FSC introduced the unaudited earnings reporting
system simultaneously, which can be found on the Market Observation Post System
(MOPS). The reporting system, implemented in 2009, aims to strengthen the supervision

of public listed companies’ voluntary disclosure of unaudited earnings; to shorten the
information gap between the companies and investors regarding the income statements; to
help investors simplify the information collection process and reduce related costs.

This unaudited earnings reporting system is different from the voluntary disclosure
of unaudited earnings via media and/or the financial forecast announcements made by
a company’s management. This study aims to examine the economic incentives for a
company’s management to voluntarily disclose unaudited earnings on the reporting
system, and to further analyzes the motives that impact management’s decision-making on

the frequency of voluntary disclosure of unaudited earnings.

2. Design/Methodology/Approach

This study established 11 determinants of voluntary disclosure of unaudited
earnings by Listed Company on Market Observation Post System under Capital Markets
Transactions Hypothesis, Signaling Hypothesis and Mitigating Agency Hypothesis,

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