Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/187563
Authors: 
Wang, Yutao
Hou, Yu
Chen, Xiaolin
Year of Publication: 
2012
Citation: 
[Journal:] China Journal of Accounting Research [ISSN:] 1755-3091 [Volume:] 5 [Year:] 2012 [Issue:] 1 [Pages:] 27-43
Abstract: 
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.
Subjects: 
New accounting standards
Analyst forecasts
Forecast error
JEL: 
G14
G20
M41
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by-nc-nd/3.0/
Document Type: 
Article

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