China’s IFRS Convergence and the Usefulness of Accounting

《China’s IFRS Convergence and the Usefulness of Accounting》由会员上传分享，免费在线阅读，更多相关内容在学术论文-天天文库。

1、China’sIFRSConvergenceandtheUsefulnessofAccountingInformationtoInternationalInvestorsXinziGaoShanghaiUniversityofFinanceandEconomicsOliverZhenLiUniversityofArizonaLijunXiaShanghaiUniversityofFinanceandEconomicsAbstractThispaperexaminestheeffectofChina’sI

2、FRSconvergenceontheusefulnessofaccountinginformationtointernationalinstitutionalinvestorsfrom13countriesorregions.WefindthattheassociationbetweeninternationalinstitutionalinvestmentandaccountingearningsdeclinesafterChina’sIFRSconvergence.Further,thisdecl

3、ineismorepronouncedforinstitutionalinvestorsfromcountrieswithpoorinvestorprotectionandlowdemandforpubliclydisclosedinformation(relationship-basedinstitutions)thanforinstitutionalinvestorsfromcountrieswithgoodinvestorprotectionandhighdemandforpubliclydisc

4、losedinformation(market-basedinstitutions).Finally,amonginstitutionalinvestorswithhomecountryIFRSexperience,theincrementalnegativeeffectofIFRSconvergenceontheinvestment-earningsassociationismorepronouncedforinvestorsfromcountrieswithrelationship-basedins

5、titutionsthanthosefromcountrieswithmarket-basedinstitutions.Takentogether,ourresultssupportBall(2001)’sargumentsthatintransitionaleconomies,afocusonsimplyadoptingwestern-styleaccountingstandardscanamounttolittlemorethanwindowdressing,andthataneconomicall

6、yefficientfinancialreportingsystemrequiresconsiderationofheterogeneousdemandsforaccountinginformationfromdifferenttypesofinformationusers.0China’sIFRSConvergenceandtheUsefulnessofAccountingInformationtoInternationalInvestors1.IntroductionWeexaminewhether

7、andhowChina’smandatoryconvergenceofitsaccountingstandardstotheInternationalFinancialReportingStandards(IFRS)affectstheinvestmentdecisionsofforeigninstitutionalinvestorsfrom13countriesorregions.Withtherapidglobalizationoftheworldeconomyandthecapitalmarket

8、s,thedemandforasetofuniversalofaccountingstandardshasincreasedinrecentyears.FormulatedbytheInternationalAccountingStandardBoard(IASB),formerlyInternationalAccountingStandardCommittee(IASC),asetofuniversalaccountingstandard