Access the full text.
Sign up today, get DeepDyve free for 14 days.
Haiyan Zhou, Y. Xiong, G. Ganguli (2009)
Does the Adoption of International Financial Reporting Standards Restrain Earnings Management? Evidence from an Emerging MarketAcademy of Accounting and Financial Studies Journal, 13
M. Paananen (2008)
The IFRS Adoption's Effect on Accounting Quality in Sweden
N. Soderstrom, K. Sun (2007)
IFRS Adoption and Accounting Quality: A ReviewEuropean Accounting Review, 16
Joachim Gassen, T. Sellhorn (2006)
Applying IFRS in Germany: Determinants and ConsequencesCapital Markets: Market Efficiency eJournal
K. Chan, Kenny Lin, Brossa Wong (2010)
The impact of government ownership and institutions on the reporting behavior of local auditors in ChinaJournal of International Accounting Research, 9
Ashiq Ali, Lee-Seok Hwang (1999)
Country-Specific Factors Related to Financial Reporting and the Value Relevance of Accounting DataJournal of Accounting Abstracts
C. Leuz, D. Nanda, Peter Wysocki (2002)
Earnings Management and Investor Protection: An International ComparisonGlobal Business Issues eJournal
Peranas Surabaya, Dosen Pengampu, Luciana Spica, Mingyi Hung, dan Subramanyam, dilihat keuangan, perusahaan menunjukkan, bahwa Roe, Rao Ato, nilai lebih, kecil perusahaan (2007)
Financial statement effects of adopting international accounting standards: the case of GermanyReview of Accounting Studies, 12
Journal of Accounting Research, 38
Journal of Accounting & Economics, 42
R. Ball (2006)
International Financial Reporting Standards (IFRS): Pros and Cons for InvestorsFinancial Accounting
Journal of Accounting and Economics, 29
Felix Oberholzer-Gee, C. Leuz (2006)
Political Relationships, Global Financing and Corporate Transparency: Evidence from IndonesiaCorporate Law: Law & Finance eJournal
Journal of Financial Economics, 81
Eli Bartov, Stephen Goldberg, Myungsun Kim (2002)
Comparative Value Relevance Among German, U.S. And International Accounting Standards: A German Stock Market PerspectiveNew York University Stern School of Business Research Paper Series
Chunhui Liu, L. Yao, Nan Hu, Lingbing Liu (2011)
The Impact of IFRS on Accounting Quality in a Regulated MarketJournal of Accounting, Auditing & Finance, 26
F. c, M. A´lvarez, V. Garcı´a-Macı´as, F. Martı´nez-Pastor, Martı´nez, S. d, M. Mata, J. Garde, L. Anel, Paz
UNC O R R E C T E D P R O O F
Douglas Skinner, Richard Sloan (1999)
Earnings Surprises, Growth Expectations, and Stock Returns or Don't Let an Earnings Torpedo Sink Your PortfolioReview of Accounting Studies, 7
Xianjie He, T. Wong, Danqing Young (2012)
Challenges for Implementation of Fair Value Accounting in Emerging Markets: Evidence from China*Contemporary Accounting Research, 29
Qian Wang, T. Wong, Lijun Xia (2008)
State ownership, the institutional environment, and auditor choice: Evidence from ChinaJournal of Accounting and Economics, 46
J. Mcmillan (1997)
Advances in Economics and Econometrics: Theory and Applications: Markets in transition
J. Figueiredo (2012)
The Impact of IFRS Adoption on Earnings Quality of Chinese FirmsJournal of Accounting and Finance, 26
Journal of Accounting and Economics, 42
Robert Bushman, Joseph Piotroski (2005)
Financial Reporting Incentives for Conservative Accounting: The Influence of Legal and Political InstitutionsInternational Finance eJournal
H. Skaife, Morton Pincus (2000)
Domestic Accounting Standards, International Accounting Standards, and the Predictability of EarningsCorporate Finance and Organizations eJournal
Mary Barth, Yaniv Konchitchki, W. Landsman (2013)
Cost of Capital and Earnings TransparencyAmerican Accounting Association Meetings (AAA)
Anwer Ahmed, Michael Neel, Dechun Wang (2013)
Does Mandatory Adoption of IFRS improve Accounting Quality? Preliminary EvidenceContemporary Accounting Research, 30
Shimin Chen, Zheng Sun, Yuetang Wang (2002)
Evidence from China on Whether Harmonized Accounting Standards Harmonize Accounting PracticesAccounting Horizons, 16
Hans Christensen, Edward Lee, M. Walker, C. Zeng (2015)
Incentives or Standards: What Determines Accounting Quality Changes around IFRS Adoption?European Accounting Review, 24
IASC (1989)
Framework for the preparation and presentation of financial statements
A. Bagaeva (2009)
The IFRS and Accounting Quality in the Transitional Economy: The Case of Russia
Patricia Dechow, Ilia Dichev (2002)
The Quality of Accruals and Earnings: The Role of Accrual Estimation ErrorsThe Accounting Review, 77
R. Ball, Scott Keating, C. Leuz, Gerhard Mueller, C. Nobes (1999)
The Effect of International Institutional Factors on Properties of Accounting EarningsS&P Global Market Intelligence Research Paper Series
Hehui Jin, Y. Qian (1998)
Public Versus Private Ownership of Firms: Evidence from Rural ChinaQuarterly Journal of Economics, 113
Yu-Min Tang (2000)
Bumpy Road Leading to Internationalization: A Review of Accounting Development in ChinaAccounting Horizons, 14
Betriebwirtschaftliche Forschung und Praxis, 71
P. Pope, M. Walker (1999)
International Differences in the Timeliness, Conservatism and Classification of EarningsSPGMI: Compustat Fundamentals (Topic)
Sugata Roychowdhury (2006)
Earnings Management Through Real Activities ManipulationSPGMI: Compustat Fundamentals (Topic)
Advances in Economics and Econometrics: Theory and Applications: Seventh World Congress (Econometric Society Monographs)
A. Bagaeva (2009)
The IFRS and accounting quality in the transitional economy
Connie Becker, Mark Defond, J. Jiambalvo, K. Subramanyam (1998)
The Effect of Audit Quality on Earnings ManagementContemporary Accounting Research, 15
Eiichiro Kudo (1991)
A Critical Study on the IASC's Framework for the Preparation and Presentation of Financial Statements, 19
P. Hribar, N. Jenkins, W. Johnson (2004)
Stock Repurchases as an Earnings Management DeviceFinancial Accounting
Patricia Dechow, Richard Sloan, A. Sweeney (1994)
DETECTING EARNINGS MANAGEMENTAccounting review: A quarterly journal of the American Accounting Association, 70
(2004)
Review of the constitution: proposal for change
Journal of Accounting Research, 46
E. Lee, M. Walker, C. Zeng (2013)
Does IFRS convergence affect financial reporting quality in China?
R. Ball, Ashok Robin, Joanna Wu (2000)
Incentives Versus Standards: Properties of Accounting Income in Four East Asian Countries, and Implications for Acceptance of IASChicago Booth Research Paper Series
Mary Barth, W. Landsman, Mark Lang (2007)
International Accounting Standards and Accounting QualityUNC: Accounting (Topic)
Solange Monteiro (2016)
Markets in transitionThe Brazilian economy, 8
Douglas Skinner, Richard Sloan (1999)
Earnings Surprises, Growth Expectations, and Stock Returns: Don't Let an Earnings Torpedo Sink Your PortfolioRoss: Accounting (Topic)
Songlan Peng, Rasoul Tondkar, J. Smith, David Harless (2008)
Does Convergence of Accounting Standards Lead to the Convergence of Accounting Practices? A Study from ChinaThe International Journal of Accounting, 43
Thomas Jeanjean, Hervé Stolowy (2008)
Do accounting standards matter? An exploratory analysis of earnings management before and after IFRS adoptionJournal of Accounting and Public Policy, 27
Journal of Financial Economics, 69
Eli Bartov, Stephen Goldberg, Myungsun Kim (2005)
Comparative Value Relevance Among German, U.S., and International Accounting Standards: A German Stock Market PerspectiveJournal of Accounting, Auditing & Finance, 20
Mark Defond, J. Jiambalvo (1994)
Debt covenant violation and manipulation of accrualsJournal of Accounting and Economics, 17
S. Carmona, Marco Trombetta (2008)
On the global acceptance of IAS/IFRS accounting standards: The logic and implications of the principles-based systemJournal of Accounting and Public Policy, 27
S. Kothari, A. Leone, Charles Wasley (2002)
Performance Matched Discretionary Accrual MeasuresMIT Sloan School of Management Working Paper Series
Holger Daske, Luzi Hail, C. Leuz, Rodrigo Verdi (2008)
Mandatory IFRS Reporting Around the World: Early Evidence on the Economic ConsequencesChicago Booth: Accounting Research Center Research Paper Series
R. Kalra (2004)
Earnings Management and Investor Protection: An International ComparisonCfa Digest, 34
Accounting and Business Research, 36
Journal of Accounting and Economics, 39
Ran Zhang, Zhengfei Lu, Kangtao Ye (2010)
How do firms react to the prohibition of long-lived asset impairment reversals? Evidence from ChinaJournal of Accounting and Public Policy, 29
Gong-meng Chen, M. Firth, Jeong‐Bon Kim (2002)
The use of accounting information for the valuation of dual-class shares listed on China's stock marketsAccounting and Business Research, 32
Journal of Accounting and Economics, 41
V. Nee (1992)
Organizational Dynamics of Market Transition: Hybrid Forms, Property Rights, and Mixed Economy in ChinaAdministrative Science Quarterly, 37
Elizabeth Eccher, P. Healy (2000)
The Role of International Accounting Standards in Transitional Economies: A Study of the People's Republic of ChinaInternational Political Economy: Investment & Finance eJournal
Journal of Accounting and Economics, 36
Songlan Peng, Kathryn Bewley (2010)
Adaptability to fair value accounting in an emerging economy: A case study of China's IFRS convergenceAccounting, Auditing & Accountability Journal, 23
(2006)
China’s New Accounting Standards: a comparison with current PRC GAAP and IFRS
Jiangyong Lu, Bin Xu, Xiaohui Liu (2009)
The Effects of Corporate Governance and Institutional Environments on Export Behaviour in Emerging EconomiesManagement International Review, 49
Journal of Accounting Research, 39
The purpose of this paper is to examine the relationship between regional institution and accounting quality.Design/methodology/approachThis study investigates whether and to what extent the convergence to International Financial Reporting Standards (IFRS) improves Chinese firms’ accounting quality. It also examines the role regional institutions play in this process. The focus is on two aspects of accounting quality: the accrual aggressiveness and the timely loss recognition. Specifically, the study tests: whether the convergence to IFRS significantly lowers the accrual aggressiveness proxied by the magnitude of discretionary accruals (DA); whether the convergence to IFRS significantly enhances the timely loss recognition proxied by the likelihood of reporting large negative net income; and whether the effects of convergence to IFRS on accounting quality vary with the quality of regional institutions.FindingsThe findings show that convergence to IFRS generally was accompanied by increases in DA and decreases in timely loss recognition for Chinese firms. Further analysis on the development of regional institutions reveals that both changes in accrual aggressiveness and timely loss recognition are more pronounced for firms located in regions with a lower level of development in the legal environment.Originality/valueThis study contributes to the accounting literature in several ways. First, it extends the accounting literature regarding institutional factors by examining the association between regional institutions and accounting quality. Second, by adopting a within-country setting, the study avoids such problems of cross-country comparisons as confounding factors caused by country-specific accounting rules and regulations, differences in infrastructure and culture, and other potential endogeneity problems (Chan et al., 2010). Third, the attention paid to the European and US application of IFRS overshadows the application and effects of IFRS in emerging markets. By examining China, the world largest emerging economy in the process of economic transition, this study sheds light on the effect of convergence to IFRS on accounting quality for emerging or transitional economies.
Asian Review of Accounting – Emerald Publishing
Published: Mar 19, 2019
Keywords: Discretionary accruals; IFRS convergence; Regional institutions; Timely loss recognition; J33; M41
Read and print from thousands of top scholarly journals.
Already have an account? Log in
Bookmark this article. You can see your Bookmarks on your DeepDyve Library.
To save an article, log in first, or sign up for a DeepDyve account if you don’t already have one.
Copy and paste the desired citation format or use the link below to download a file formatted for EndNote
Access the full text.
Sign up today, get DeepDyve free for 14 days.
All DeepDyve websites use cookies to improve your online experience. They were placed on your computer when you launched this website. You can change your cookie settings through your browser.