Financial packaging of IPO firms in China
Article Abstract:
Earnings patterns of 83 initial public offering (IPO) firms in China are examined and analyzed to reveal the role of earnings management in financial packaging of the country's state-owned enterprises. All companies studied are state-owned but have issued local B-Shares or Hong Kong H-Shares to foreign investors between 1992 and 1995. Sixteen of the companies are classified into 'protected' industries such as energy, raw materials and petrochemicals; the remainder are in 'unprotected' industries. Comparison of pre- and post-IPO figures reveals an overall decline in return on assets (ROA) that is statistically significant only in unprotected industries, suggesting that protected industries have special favor from the state during selection.
Publication Name: Journal of Accounting Research
Subject: Business
ISSN: 0021-8456
Year: 2000
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Country-specific factors related to financial reporting and the value relevance of accounting data
Article Abstract:
A discussion of how country-specific factors affect the value relevance of financial accounting data is presented. The study utilizes data from manufacturing firms in 16 countries over the period 1986-95. Findings include lower value relevance when a country has a bank-oriented instead of market-oriented financial system; when private-sector bodies do not set standards; and when tax rules influence measurements. Overall value relevance is lower in Continental Europe than in the US and UK. Value relevance increases when more is spent on external auditing services. The results in question are pertinent to debates on international standardization of accounting practices.
Publication Name: Journal of Accounting Research
Subject: Business
ISSN: 0021-8456
Year: 2000
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Discussion of international differences in the timeliness, conservatism, and classification of earnings
Article Abstract:
A study comparing differences in the timeliness and conservatism of US and UK reported earnings is discussed. The study concludes that the US accounting regime is significantly more conservative than its UK counterpart when comparing earnings before extraordinary items but is less conservative when comparing the bottom line. Motivations for study include influencing standards setters. The research agenda is discussed in detail.
Publication Name: Journal of Accounting Research
Subject: Business
ISSN: 0021-8456
Year: 1999
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