The Value Relevance Effects of IFRS Adoption: The Case of the People’s Republic of China
1
조회
0
다운로드
10
인용
0
참고문헌
키워드
초록
We examine the value relevance of accounting information before and after IFRS adoption in the Chinese accounting standards started at 2006 for China capital market, and investigate whether the IFRS adoption affects the financial statements and their value relevance for 3,910 firm‐years of listed firms on SHSE during the period of 2002‐2008. The results are summarized as follows. First, the explanatory power of Ohlson(1995) model increases continuously from 2002 to 2008, and the coefficient of BVE decreases gradually, but the coefficient of E increases after IFRS adoption. Second, the value relevance of accounting information is significantly different between before and after IFRS adoption. Before IFRS adoption, the explanatory power of Ohlson (1995) model is relatively low (adj. R2= 0.264), but relatively high (adj. R2= 0.476) after IFRS adoption. Also, book value of equity plays an influential role before IFRS adoption, but earning has an important effect on stock price after IFRS adoption. Third, the value relevance of accounting information is different by firm’s tradable ratio position. Book value–price relationship is high if a firm’s tradable ratio is low, and earning‐price association is high if a firm’s tradable ratio is high. Finally, the value relevance of accounting information by firm’s tradable ratio is different before IFRS adoption, but not after IFRS adoption.
Abstract
We examine the value relevance of accounting information before and after IFRS adoption in the Chinese accounting standards started at 2006 for China capital market, and investigate whether the IFRS adoption affects the financial statements and their value relevance for 3,910 firm‐years of listed firms on SHSE during the period of 2002‐2008. The results are summarized as follows. First, the explanatory power of Ohlson(1995) model increases continuously from 2002 to 2008, and the coefficient of BVE decreases gradually, but the coefficient of E increases after IFRS adoption. Second, the value relevance of accounting information is significantly different between before and after IFRS adoption. Before IFRS adoption, the explanatory power of Ohlson (1995) model is relatively low (adj. R2= 0.264), but relatively high (adj. R2= 0.476) after IFRS adoption. Also, book value of equity plays an influential role before IFRS adoption, but earning has an important effect on stock price after IFRS adoption. Third, the value relevance of accounting information is different by firm’s tradable ratio position. Book value–price relationship is high if a firm’s tradable ratio is low, and earning‐price association is high if a firm’s tradable ratio is high. Finally, the value relevance of accounting information by firm’s tradable ratio is different before IFRS adoption, but not after IFRS adoption.
참고문헌 (21)
- Abdel-Khalik, R., "The Information Environment of China’s A and B‐Shares: Can We Make Sense of The Numbers", International Journal of Accounting, 34, pp.467~489 (1999)
- Bao, B. H, "The Usefulness of Earnings and Book Value for Equity Valuation in Emerging Capital Markets: Evidence from Listed Companies in the People’s Republic of China", Journal of International Financial Management and Accounting, 10, pp.85~100 (1999)
- Baker, C. A., "Chinese Accounting: The New Revolution", The Journal of 21st Century Accounting, 8(1), pp.1~6 (2008)
- Bartov, E., "Comparative Value Relevance among German, US and International Accounting Standards: A German Stock Market Perspective", Journal of Accounting Auditing & Finance, 20(2), pp.95~119 (2005)
- Chen, C. J. P., "Is Accounting Information Value‐Relevant in the Emerging Chinese Stock Market", Journal of International Accounting Auditing and Taxation, 10, pp.1~22 (2001)
- Chen, G., "Foreign Ownership Restrictions and Market Segmentation in China’s Stock Markets", The Journal of Financial Research, 1, pp.133~155 (2001)
- Dan H., "The Usefulness of Financial Statements under Chinese GAAP vs. IAS: Evidence from the Shanghai Stock Exchange", pp.16~37 (2004), Kobe Economic and Business Review
- The Role of International Accounting Standard Sin transitional Economies: A Study of the People’s Republic of China, "Eccher, E", Massachusetts Institute of Technology, ~ (2003)
- "Market Response to and The Value Relevance of Reconciliation Adjustments from UK-GAAP to IFRS: First Evidence from the UK"[URL]
- Financial statement effects of adopting international accounting standards: the case of German, "Hung M. S", University of Southern California, ~ (2006)
- Lang, M., "How Representative Are Firms That Are Cross Listed In The United States? an Analysis of Accounting Quality", Journal of Accounting Research, 41(2), pp.363~386 (2003)
- 金春洙, "中韩财务报表比较研究", 국제회계연구, 25(25), pp.249~276 (2009), 한국국제회계학회
- Lin, Z. J, "Value Relevance of International Accounting Standards Harmonization: Evidence from A‐ and B‐Share Markets in China", Journal of International Accounting, Auditing and Taxation, 14, pp.79~103 (2005)
- Lin. H, "Corporation and Corporate Governance in China’s Economic Transition", Economics of Planning, 32(2), pp.187~209 (2001)
- The Development of Value Relevance of IAS and IFRS over Time: The Case of German, "Lin, H", University of Hertfordshire, ~ (2007)
- Niskanen, J., "The Value Relevance of IAS Reconciliation Components: Empirical Evidence from Finland", Journal of Accounting and Public Policy, 19(2), pp.119~137 (2000)
- Ohlson, J, "Earnings, Book value, and Dividends in Security Valuation", Contemporary Accounting Research, 11, pp.661~687 (1995)
- Penman, S, "A Comparison of Dividend, Cash Flow, and Earnings Approaches to Equity Valuation", Contemporary Accounting Research, 15(3), pp.343~384 (1998)
- Sami, H., "A Comparison of Value Relevance of Accounting Information in Different Segments of the Chinese Stock Market", The International Journal of Accounting, 39(1), pp.403~427 (2004)
- The Impact of Market Segmentation on the Value Relevance of Accounting Information: Evidence from China, "Wu. S.", California State Polytechnic University, ~ (2008)
- Zheng, Lirong, "중국기업의 지배구조가 대리인비용에 미치는 영향", 국제회계연구, (29), pp.247~273 (2010), 한국국제회계학회