英文摘要 |
The main purpose of this paper is to examine whether the adoption of IFRS moderates the relation between information asymmetry and cash holding. The results suggest that firms significantly increase their cash holdings after the IFRS adoption. We further utilize Oaxaca-Blinder decomposition model to decompose the difference in cash holdings between the pre- and post-adoption period into the part that can be explained by the endowment effect (i.e., changes in information asymmetry) and the part that can be explained by the coefficient effect (i.e., changes in the coefficient estimates of information asymmetry). And analysis the reason that impact the pre-post change in cash holdings. The results indicate that the cash holdings increase after the IFRS adoption is due to a decrease in information asymmetry (which is measured base on firms’ characteristics) and an increase in regression coefficient of information asymmetry. Further, we match each adoption firm (Taiwanese firm) to a non-adoption firm (Japanese firm) on a propensity score and conduct a difference-in-differences test. The results are unchanged. Overall, the results support the monitoring cost hypothesis of cash holdings. |