Faculty Scholarship 1994 - Present

Characteristics of Earnings Versus Book Value Firms in the Taiwan Stock Exchange

This study classifies Taiwanese firms into earnings and book value groups, then examines firm characteristics that can explain the difference between the two groups. Logistic regression results show that earnings firms tend to be large in size while book value firms tend to be small in size. Results of validation through cross-sectional regressions show that earnings are indeed more value relevant than book value for large size firms while book value is indeed more value relevant than earnings for small size firms.