e-journal

The appraisal of ordinary shares by Chinese financial analysts

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Purpose – The purpose of this paper is to provide insights into recent financial analysis practice in
the Chinese context. The paper aims to examine the approaches pursued and information used by
Chinese financial analysts in investment appraisal of ordinary shares. The research seeks to explore
influences upon analysts’ decision making and how analysts perceived the Chinese investment
environment.
Design/methodology/approach – A questionnaire based survey approach was used, conducted in
2003 with 65 Chinese financial analysts.
Findings – The findings indicate that fundamental analysis was the predominant technique adopted
in appraising equities in line with the development of institutional investors and improved market
efficiency. Regarding information used to analyse companies, annual reports constituted the most
influential source. The Chinese analysts favoured usage of International Financial Reporting
Standards (IFRSs) and International Accounting Standards (IASs) by A-share companies. The
findings indicate changes within the financial analyst community, suggesting pressure for higher
quality analysis and increased use of more sophisticated techniques despite ongoing market
shortcomings. Opinions vary as to how important financial analysis is in influencing stock valuation
or, crucially, socio-economic welfare. However, studies putting the analysts’ role in perspective vis-a`-vis
other forces contribute to broadening understanding of this significantly under researched area. This
current study contributes to filling this gap.
Originality/value – This paper provides insights into how specific country contexts influence
financial analysts’ investment appraisal practice in interims of incentives, information sources and
techniques adopted.

Keywords Financial analysis, Equity capital, Accounting, Shares, China

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Ketersediaan

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Informasi Detail

Judul Seri

Asian Review of Accounting

No. Panggil

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Penerbit

: Emerald Group., 2011

Deskripsi Fisik

Asian Review of Accounting Vol. 19 No. 1, 2011 pp. 5-30

Bahasa

English

ISBN/ISSN

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Klasifikasi

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Tipe Isi

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Tipe Media

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Tipe Pembawa

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Edisi

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Subjek

AKUNTANSI

Info Detail Spesifik

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Pernyataan Tanggungjawab

Asmawati/Syahrial

Versi lain/terkait

Lampiran Berkas

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