Bumpy Road Leading to Internationalization: A Review of Accounting Development in China

Tang, Yunwei

doi:10.2308/acch.2000.14.1.93

Cited by 79 publications

(61 citation statements)

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“…These 13 industry-specific regulations were transitory and were to be replaced by 30 detailed accounting standards guided by the ASBE and "should be in harmony with the standards promulgated by the IASC to the extent possible" (Xiao & Pan, 1997, 281;Xiang, 1998 These regulations were intended to harmonize CAS with IFRS (Xiang, 1998;Haw et al, 1999;Peng et al, 2008). In addition, 16 detailed accounting standards were issued between 1997 and 2001 (Haw et al, 1999;Tang, 2000;Deloitte Touche Tohmatsu, 2006a …”

Section: The Chinese Stock Market and The Development Of Accounting Smentioning

confidence: 99%

“…In contrast, critics (e.g. Xiang, 1998;Eccher & Healy, 2000;Tang, 2000;Xiao et al, 2004) have questioned the relevance of IFRS given China's special circumstances. For example, Eccher and Healy (2000, p. 1) contend that the IFRS "are primarily based on those [accounting standards] for countries with highly developed capital markets, such as the US and UK.…”

Section: Introductionmentioning

confidence: 99%

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

Chamisa

Mangena

2012

Journal of Accounting in Emerging Economies

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Purpose -This study investigates the relative value relevance of accounting measures based on Chinese Accounting Standards (CAS) and International Financial Reporting Standards (IFRS) in relation to both A-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, we employ the price model to test for the association between CAS-and IFRSbased accounting information, and A-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, we find that for both the A-and B-share markets, both CAS-based and IFRSbased 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-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 CASbased accounting in China and contributes to the debate on the (ir)relevance of IFRS in emerging and transitional economies.

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Section: The Chinese Stock Market and The Development Of Accounting Smentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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

Chamisa

Mangena

2012

Journal of Accounting in Emerging Economies

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“…There had been numerous studies tying concerns with China's weak accounting institutions and questionable corporate reporting to the stunted development of its capital markets (e.g., DeFond, Wong, and Li, 1999;Tang, 2000). IFRS adoption was expected to improve accounting quality.…”

mentioning

confidence: 99%

The International Politics of IFRS Harmonization

Ramanna

2012

SSRN Journal

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The globalization of accounting standards as seen through the proliferation of IFRS worldwide is one of the most important developments in corporate governance over the last decade. I offer an analysis of some international political dynamics of countries' IFRS harmonization decisions. The analysis is based on field studies in three jurisdictions: Canada, China, and India. Across these jurisdictions, I first describe unique elements of domestic political economies that are shaping IFRS policies. Then, I inductively isolate two principal dimensions that can be used to characterize the jurisdictions' IFRS responses: proximity to existing political powers at the IASB; and own potential political power at the IASB. Based on how countries are classified along these dimensions, I offer predictions, ceteris paribus, on countries' IFRS harmonization strategies. The analysis and framework in this paper can help broaden the understanding of accounting's globalization.

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“…Economic changes also stimulated the growth of the CPA profession (DeFond et al 2000). Globalization of economic activities accelerated conformity to international accounting practice principles (Tang 2000).…”

Section: Audit Market Reformsmentioning

confidence: 99%

Main Principles and Practices of Auditing Independence in China: A Multifaceted Discussion

Lan

Γεωργακόπουλος

Sotiropoulos³

et al. 2010

ASS

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This paper attempts through a review of the associated literature to describe and critically evaluate the audit market in China by exploring the main factors that affect auditor independence. The study identifies that non-audit service and low-balling/price-cutting are not parameters affecting auditor independence. Regulation can effectively help to maintain audit independence, but the enforcement of those regulations is very poor. Audit firm reputation is established and maintained by fulfilling the obligations of guanxi (personal relationship), rather than by reporting modified opinions fairly and trustfully. Due to government protection, competition in the Chinese audit market is limited and the possibility that Chinese audit firms lower their fees to retain clients is much diminished. Thus, competition and audit firm size appear to be positive aspects for audit independence. However, other national cultural and political-regulatory factors seem to have a moderating effect.

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Bumpy Road Leading to Internationalization: A Review of Accounting Development in China

Cited by 79 publications

References 0 publications

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

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

The International Politics of IFRS Harmonization

Main Principles and Practices of Auditing Independence in China: A Multifaceted Discussion

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