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Accounting standard changes and foreign analyst behavior: display from mainland mainland 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 accepted 4 May 2010. sure 9 September 2010. purchasable 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(prenominal) Chinese New Accounting Standards was implemented during 2007. The empirical results show that after the new story standards were implemented, augur faulting among foreign analysts decreased in both absolute and comparative terms in coincidence with domestic analysts, and foreign analysts forecast earnings more often t han they did before the new be standards. These results imply that the implementation of new explanation standards in the Chinese upper-case letter market helped lower both information unbalance between listed firms in China and foreign investors, and the home solidus of foreign analysts. It also change magnitude the attractiveness of listed firms and facilitated international converse and cooperation.

This study also has epochal implications for how resource allocation efficacy in the Chinese capital market can be raised and how the introducing in polity should be assessed. Keywords New history standards; Analyst forecasts; Forecast defect JEL classification G14; G20; M41 1. Introduction This paper explor! es 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 hefty of accounting standards and were a major measure by which the birth in, going...If you want to get a full essay, order it on our website: OrderEssay.net

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