This study investigates changes in foreign analyst behavior before and after Chinese New Accounting Standards was implemented during 2007.The empirical results show that after the new accounting standards were impleme...This study investigates changes in foreign analyst behavior before and after Chinese New Accounting Standards was implemented during 2007.The empirical results show that after the new accounting standards were implemented,forecast error among foreign analysts decreased in both absolute and relative terms in comparison with domestic analysts,and foreign analysts forecast earnings more frequently than they did before the new accounting standards.These results imply that the implementation of new accounting standards in the Chinese capital market helped mitigate both information asymmetry between listed firms in China and foreign investors,and the "home bias" of foreign analysts.It also increased the attractiveness of listed firms and facilitated international communication and cooperation.This study also has significant implications for how resource allocation efficiency in the Chinese capital market can be raised and how the "introducing in" policy should be assessed.展开更多
This study investigates whether accotmting earnings can predict future Gross Domestic Product （GDP） growth within China＇s institutional settings. Konchitchki and Patatoukas （2014a） find that accounting earnings i...This study investigates whether accotmting earnings can predict future Gross Domestic Product （GDP） growth within China＇s institutional settings. Konchitchki and Patatoukas （2014a） find that accounting earnings is a significant leading indicator of GDP growth for the next three or four quarters. We conjecture, however, that earnings management would weaken such predictive power for accounting earnings because it distorts earnings from real corporate profit. As earnings of Chinese firms are more seriously manipulated than those of US firms, this study finds that earnings of Chinese listed firms can only predict GDP growth for a single quarter. We further decompose accounting earnings into operating cash flow and accrual earnings and find that operating cash flow which is less affected by earnings management has better predictive power for GDP over the longer horizon of the next three quarters, but accrual earnings can only predict GDP growth for the next quarter.展开更多
基金supported by Grants from the National Natural Science Foundation of China for"An Investigation on the Valuation and Behavioral Effects 0f New Accounting Standards"(Project No.70872056),"Research on Effects of Information Environment Changes on Behavior and Difference of Local and Foreign Analysts"(Project No.71102124),and"Earnings Management,Risk Mark and Audit Opinion Decision-Making"(Project No.70972139)Grants from the Beijing Municipal Commission of Education"Joint Construction Project"the "Project 211"(Phase-3)Fund of the Central University of Finance and Economics,China
文摘This study investigates changes in foreign analyst behavior before and after Chinese New Accounting Standards was implemented during 2007.The empirical results show that after the new accounting standards were implemented,forecast error among foreign analysts decreased in both absolute and relative terms in comparison with domestic analysts,and foreign analysts forecast earnings more frequently than they did before the new accounting standards.These results imply that the implementation of new accounting standards in the Chinese capital market helped mitigate both information asymmetry between listed firms in China and foreign investors,and the "home bias" of foreign analysts.It also increased the attractiveness of listed firms and facilitated international communication and cooperation.This study also has significant implications for how resource allocation efficiency in the Chinese capital market can be raised and how the "introducing in" policy should be assessed.
文摘This study investigates whether accotmting earnings can predict future Gross Domestic Product （GDP） growth within China＇s institutional settings. Konchitchki and Patatoukas （2014a） find that accounting earnings is a significant leading indicator of GDP growth for the next three or four quarters. We conjecture, however, that earnings management would weaken such predictive power for accounting earnings because it distorts earnings from real corporate profit. As earnings of Chinese firms are more seriously manipulated than those of US firms, this study finds that earnings of Chinese listed firms can only predict GDP growth for a single quarter. We further decompose accounting earnings into operating cash flow and accrual earnings and find that operating cash flow which is less affected by earnings management has better predictive power for GDP over the longer horizon of the next three quarters, but accrual earnings can only predict GDP growth for the next quarter.
