e-journal

Relative value-relevance of accounting measures based on Chinese Accounting Standards and International Financial Reporting Standards

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Purpose – The purpose of this paper is to investigate the relative value relevance of accounting
measures based on Chinese Accounting Standards (CAS) and International Financial Reporting
Standards (IFRS) in relation to both A-share and B-share markets during three distinct phases
(1994-1997, 1998-2000 and 2001-2004) over which CAS were progressively harmonized with IFRS.
Design/methodology/approach – Using data for 86 Chinese listed companies which issued both
A- and B-shares, the authors employ the price model to test for the association between CAS-based and
IFRS-based accounting information, and A-share and B-share prices. The J-test was employed to
determine the relative value relevance of the information based on the two sets of accounting standards.
Findings – Overall, the authors find that for both the A-share and B-share markets, both CAS-based
and IFRS-based accounting information are value relevant, but IFRS-based information is more value
relevant than the CAS-based information. However, the magnitude of the differences between
the explanatory powers of the CAS- and IFRS-based accounting information narrowed significantly in
the 2001-2004 period in both the A-share and B-share markets. The results are robust to the deflator
used and the stock exchange on which the companies are listed.
Practical implications – The results have implications for China and other transitional economies
attempting to integrate IFRS with a uniform accounting system.
Originality/value – The paper provides the first comprehensive empirical evidence as to whether or
not the progressive harmonization of CAS with IFRS improved the value relevance of CAS-based
accounting in China and contributes to the debate on the (ir)relevance of IFRS in emerging and
transitional economies.

Keywords China, Stock markets, Accounting standards, Relative value-relevance, Price model, Chinese Accounting Standards, International Financial Reporting Standards, Chinese stock market

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Ketersediaan

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Informasi Detail

Judul Seri

Journal of Accounting in Emerging Economies

No. Panggil

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Penerbit

: Emeral Group., 2012

Deskripsi Fisik

Journal of Accounting in Emerging Economies Vol. 2 No. 2, 2012 pp. 162-187

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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