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 language | English |
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Pages (from-to) | 95-107 |
Number of pages | 13 |
Journal | Journal of Chinese Economic and Business Studies |
Volume | 19 |
Issue number | 1 |
Early online date | 16 Nov 2020 |
DOIs | |
Publication status | Published - 2 Jan 2021 |
Externally published | Yes |
Keywords
- IFRS adoption
- firm performance
- convergence
- Chinese accounting standards
- ROA
- ROE