The Relationship between Changes in Accounting Principles and Accounting Information Quality

• Main Authors: Ya-Lan Chiu, 邱雅蘭
• Other Authors: Han-Min Wang
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/09694313655876664907

碩士 === 逢甲大學 === 會計所 === 98 === Abstract There has been considerable debate on whether cross-listed companies should prepare financial statements according to different accounting standards. In this paper, we use companies listed in both China’s A- and B-share markets as a sample to examine whether the accounting information disclosed by different accounting standards (International Financial Reporting Standards, China Enterprise Accounting Standards and New China Enterprise Accounting Standards) has information content. We also examine the information quality changes around the adoption of New China Enterprise Accounting Standards. The empirical results show as followings: 1. From year 2001 to year 2006, we found that A-share market reflects the earnings information prepared by International Financial Reporting Standards. It indicates that International Financial Reporting Standards can provide better information quality. However, both markets do not reflect the earnings information prepared using New China Enterprise Accounting Standards over the period 2007 through 2008. 2. In subsample two, the bad as well as the good news samples, we observe that from year 2001 to year 2006 both A- and B-share markets could reflects the earnings information prepared by International Financial Reporting Standards in the good news subsample. It indicates that International Financial Reporting Standards could provide better information quality than China Enterprise Accounting Standards. During the year 2007-2008, we found that B-share market reflects the earnings information prepared by New China Enterprise Accounting Standards in the bad news sample. It shows that New China Enterprise Accounting Standards could provide higher information quality in the B-share market.