Does IFRS convergence bring improvement in firm performance? An empirical analysis

Muhammad Shahin Miah

Research output: Contribution to journalArticlepeer-review

4 Citations (Scopus)

Abstract

This paper investigates the impact of IFRS adoption on Chinese listed companies. More specifically, this study shows the empirical evidence of the effect of a new set of Chinese accounting standards (CAS) introduced in 2007 on firms’ performance. Analyzing 7020 firm-year observations, this study finds that, compared to pre-IFRS adoption regime, firms’ performance significantly improves after IFRS adoption. A set of sensitivity analysis provides consistent findings about the impact of new CAS on firms’ profitability. As for the implication of international accounting standards, these findings suggest that adoption of global accounting standards is bringing positive change in the capital market through firms’ development in terms of profitability.
Original languageEnglish
Pages (from-to)95-107
Number of pages13
JournalJournal of Chinese Economic and Business Studies
Volume19
Issue number1
Early online date16 Nov 2020
DOIs
Publication statusPublished - 2 Jan 2021
Externally publishedYes

Keywords

  • IFRS adoption
  • firm performance
  • convergence
  • Chinese accounting standards
  • ROA
  • ROE

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