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

Lee, J. Z., Liao, H. M., and Ma, H. P. 2022. The Determinants of Voluntary Disclosure of Unaudited Earnings by Listed Company on Market Observation Post System. NTU Management Review, 32 (1): 127-152. https://doi.org/10.6226/NTUMR.202204_32(1).0004

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

Abstract

The study collects data of public listed companies in Taiwan from 2009 to 2017 to examine the determinants that influence these company managements' voluntary disclosures of unaudited earnings after the implementation of the unaudited earnings reporting system on the TSE Market Observation Post System (MOPS). This study further divides the sample into three different disclosure frequencies, namely "Monthly," "Quarterly," and "None," to analyze the economic motivation behind managements' decision-making on disclosure frequency. The empirical results show that companies are more likely to voluntarily disclose their unaudited earnings and have higher disclosure frequency when falling in the following conditions: in the need of raising funds, of larger scales, with lower buy-and-hold abnormal return, showing better operating performance, non-family controlled, with larger board size, and with lower ratio of independent directors.  


Keywords

voluntary disclosureunaudited earningsdisclosure frequency of unaudited earningsunaudited earnings reporting system


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