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Accounting standard changes and foreign analyst behavior: express from china Yutao Wanga, , , Yu Houb, Xiaolin Chenc a school of Accountancy, Central University of Finance and Economics, china b Rotman School of Management, University of Toronto, Toronto, Canada c School of Accounting, Jiujiang University, China standard 4 May 2010. sure 9 September 2010. lendable online 30 April 2012. http://dx.doi.org/10.1016/j.cjar.2012.02.001, How to make or Link Using inside Cited by in Scopus (0) Permissions & angstrom; Reprints Abstract This study investigates changes in foreign analyst behavior beforehand and after Chinese New Accounting Standards was implemented during 2007. The empirical results show that after the tonic story standards were implemented, augur faulting among foreign analysts decreased in both absolute and comparative terms in analogy with domestic analysts, and foreign analysts forecast earnings more much than they did before the new be sta ndards. These results imply that the implementation of new explanation standards in the Chinese capital market helped relieve both information unbalance between listed firms in China and foreign investors, and the home solidus of foreign analysts. It also increase the attractiveness of listed firms and facilitated international converse and cooperation.

This study also has square implications for how resource allocation efficacy in the Chinese capital market can be raised and how the introducing in policy should be assessed. Keywords New business relationship standards; Analyst forecasts; Forecast frac ture JEL classification G14; G20; M41 ! 1. Introduction This paper explores the effect of IFRS adoption in the Chinese stock market on foreign investors by examining its impact on foreign analyst behavior. The new accounting standards issued on January 1, 2007 represent a significant systematic honorable of accounting standards and were a major measure by which the show in, going...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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