Title: Accounting standards and quality of earnings information: evidence from an emerging economy
Authors: Haiyan Zhou, Kai S. Koong, Yan Xiong
Addresses: Department of Accounting and Business Law, College of Business Administration, The University of Texas-Pan American, 1201 West University Drive, Edinburg, TX 78541, USA. ' Department of Computer Information Systems, and Quantitative Analysis, College of Business Administration, The University of Texas-Pan American, 1201 West University Drive, Edinburg, TX 78541, USA. ' Department of Accountancy, College of Business Administration, California State University, Sacramento, 6000 J Street, Sacramento, CA 95619, USA
Abstract: Among global fund managers and investors, the reliability of accounting data in emerging markets can be a major concern because some of the firms in their portfolio may be disseminating information that lacks compliance with generally accepted accounting standards. This study investigates the changes in the value relevance of earnings following the implementation of new national accounting standards in an emerging economy using China as an example. Specifically, this research analyses the difference in value relevance changes between two market segments. The results show that implementation of specific national standards has a positive effect on the perceived value of the accounting information. Such a perception is reflected in the increased value relevance of the earnings.
Keywords: electronic financial information; value relevance; China; information quality; accounting standards; emerging markets; global financial management; emerging economies; earnings information; e-finance; electronic finance; accounting information.
International Journal of Electronic Finance, 2007 Vol.1 No.3, pp.355 - 372
Published online: 01 Dec 2006 *
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