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

Chamisa, Eddie; Mangena, Musa; Ye, Guanlan

doi:10.1108/20421161211229826

Cited by 20 publications

(27 citation statements)

References 47 publications

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“…(), Li (), Lin and Chen (), Chamisa et al . (), Rutledge et al . (), and Qu and Zhang (), attempts to explore differences in accounting information content under CAS and IFRS.…”

Section: Literature Reviewmentioning

confidence: 99%

China's Convergence with IFRS: Analysis of Dual‐listed Companies

Zhang

2020

Abacus

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This study investigates China's convergence towards International Financial Reporting Standards (IFRS) using generally accepted accounting principles (GAAP) differences data disclosed in AH‐share companies’ annual reports from 2006 to 2017. We firstly find that 92% of AH‐share companies disclosed GAAP differences in 2006, immediately prior to implementation of converged Chinese accounting standards (CAS). This ratio decreased to 88% in 2007, 58% in 2010, and 38% in 2011, respectively. After 2011, less than one third of AH companies disclosed GAAP differences. Secondly, an increasing number of AH companies (35%) have published CAS‐based financial statements in Hong Kong from 2014. Thirdly, except for the first few years after 2007, the disclosed GAAP differences have dropped to a very low level; since 2010 the net profit and net assets GAAP differences ratios have been below 0.5%. Fourthly, reduction of the disclosed GAAP differences appears to be the result of efforts by Chinese standard setters and regulators, work related to the International Accounting Standards Board, or changes in China's special socio‐economic environment. Distinct from word‐by‐word comparison between CAS and IFRS, this research shows that China has achieved its original goal, namely an enterprise applying CAS should produce financial statements that are the same as those of an enterprise that applies IFRS. Our findings provide insights regarding China's institutional evolution in terms of the country's IFRS convergence effort, which are useful for further empirical study.

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“…(), Li (), Lin and Chen (), Chamisa et al . (), Rutledge et al . (), and Qu and Zhang (), attempts to explore differences in accounting information content under CAS and IFRS.…”

Section: Literature Reviewmentioning

confidence: 99%

China's Convergence with IFRS: Analysis of Dual‐listed Companies

Zhang

2020

Abacus

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“…There may be differences of impact of IFRS adoption depending on whether the economy is of developed or developing category. Niskanen et al [31 and 32] and Bartov et al [20] are some studies anchored in developed economy while Jermakowicz and Gornik-Tomaszewski, [33], ElShamy and Al-Qenae, [34], El-Shamy and Kayed, [35] and Chamisa et al [16] are some investigations in developing countries. It is therefore possible to view another four dimensions that analytical studies may focus.…”

Section: International Letters Of Social and Humanistic Sciences Vol 69mentioning

confidence: 99%

“…If the IFRS are to be truly international accounting standards, the above impacts of IFRS must be evident in countries across the globe irrespective of political, economic and cultural diversities. Chamisa et al [16] claim that there are two constituents of studies on the value relevance of IFRS depending on the economic context in which the data are obtained. That is, whether the data from developed, developing and transitional economies.…”

Section: International Letters Of Social and Humanistic Sciences Vol 69mentioning

confidence: 99%

“…Kadri et al [24], Karampinis and Hevas [25], Chalmers at al. [26], Chamisa et al [16], Kargın [27] and Beisland and Knivsfla [28] are some examples of researches that have explored the impact of IFRS adoption through changes in value relevance of accounting numbers. Wang et al [29], Tsalavoutas and Dionysiou [30] are some examples of studies falling in Dimention-02.…”

Section: International Letters Of Social and Humanistic Sciences Vol 69mentioning

confidence: 99%

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International Financial Reporting Standards: A Review of Status of Adoption and Approaches for Evaluation

Nijam

Jahfer

2016

ILSHS

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Abstract. The purpose of this review is to explore various approaches and perspectives that are currently being used by empirical studies reporting the impact of IFRS adoption in different jurisdictions around the globe. For this purpose to be better served, this study also presents at the outset an overview of the scope, objectives and current adoption status of IFRS. This study reviewed the literature on classifications of IFRS adoption studies with the view of deducting methodical frameworks outlining the dimensions that may warrant investigation for IFRS to be consented as a set of quality and global accounting standards. This study concludes that the success of IFRS as an international accounting standard depends on one hand in its technical quality economically yielding to both users and reporters of financial statements and on the other hand their acceptance across different jurisdictions despite their political, cultural and economic diversities.

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“…Chamisa et al [28] studied using data for 86 Chinese listed companies which issued both A-and Bshares and revealed that for both the A-share and B-share markets, both Chinese Accounting Standards (CAS)-based and IFRS-based accounting information are value relevant, but IFRS-based information is more value relevant than the CAS-based information. They claim that this is the first to investigate the relative value relevance of CAS-and IFRS-based accounting measures in both the A-and B-share markets covering all the three distinct periods when CAS was progressively harmonized with IFRS.…”

mentioning

confidence: 99%

IFRS Adoption and Financial Reporting Quality: A Review of Evidences in Different Jurisdictions

Nijam

Jahfer

2016

ILSHS

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Abstract. Conventional and commonly held wisdom with respect to the adoption of International Financial Reporting Standards (IFRS) is that they lead to improved financial reporting quality and comparability and thereby favorable economic consequences. There are however contradicting evidences disproving this conventional wisdom or rejecting its gross generalization over the entire jurisdictions harmonizing on IFRS. Driven by this fact, quests for knowledge about the dynamics and contexts that lead to differential effects of IFRS get momentum. In an attempt to explore the insight into the effects of international accounting harmonization by way of IFRS adoption, this paper reviews selected literatures on consequences of IFRS adoption. This review discusses some empirical evidences that have been reported in various countries that include Europe, USA, United Kingdom, Germany, Spain, Norway, Greece, Poland, Belgian, France, Italy, Turkey, United Arab Emirates (UAE), Kuwait, Jordan, China, Malaysia, Australia, Hong Kong, New Zealand, Kenya and Nigeria. Our review focuses on the aspects of value relevance, disclosure quality, cost of capital, earning management and financial statement impact due to the IFRS adoption. This review reveals that economic consequences of IFRS adoption significantly differ across jurisdictions though being its impact reported to be positive in majority of cases. There are also notable number of studies that report indifferent and or negative effects of IFRS adoption. When IFRS studies report mixed evidence with respect to value relevance of book value of equity and earing, book value of equity supersedes the earning parameters. IFRS are found to supersede many other domestic financial reporting standards in terms of volume and quality of disclosures in financial statements. This review also obtains that IFRS' impact on the reduction of cost of capital depends on financial reporting incentives, law enforcement, types of legal systems and various other country and capital market specific characteristics. Further, though there are some evidences to the contrary, the quality of earnings reported under IFRS has been established to be superior to that under other local standards.

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

Cited by 20 publications

References 47 publications

China's Convergence with IFRS: Analysis of Dual‐listed Companies

China's Convergence with IFRS: Analysis of Dual‐listed Companies

International Financial Reporting Standards: A Review of Status of Adoption and Approaches for Evaluation

IFRS Adoption and Financial Reporting Quality: A Review of Evidences in Different Jurisdictions

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