| Summary: | 碩士 === 中國文化大學 === 會計學系 === 98 === On 15th February 2006, the Ministry of Finance of the People’s Republic of China announced the issuance of the new Accounting Standards for Business Enterprises (ASBEs) which made considerably change into Generally Accepted Accounting Practice of Mainland China (PRC GAAP) in the end of 2000. After remarkably adjusting, ASBEs converge into International Financial Reporting Standards (IFRSs).
Based on the literature by Francis, LaFond, Olsson and Schipper (2004), this re-search distributes earning quality into two sections: accounting- based and market- based. In the accounting-based earnings attributes, it comprises accrual quality, earning persistence, earning predictability and earning smoothness. Therefore, this research principally examines whether the adoption of ASBEs increase accounting-based earnings attributes. The studied samples in this research are the A shares listed on China’s stock markets during 2004-2005 (the third stage) and 2007-2008 (the fourth stage).
The results show that accrual quality, earnings persistence, earnings predictability and earnings smoothness increase earnings quality and decrease earnings management after adopting ASBEs. ASBEs achieve an objectives of convergence and significantly rise the quality of financial statement and set up the new milestone of Chinese accounting standards system.
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