Analysis on Chinese companies with Introduction of the IFRS and the Conservatism Features

중국기업의 국제회계기준 도입과 보수주의 특성 분석

  • Kim, Dong-Il (Dept. of Business Administration, Pusan National University)
  • Received : 2016.01.11
  • Accepted : 2016.08.20
  • Published : 2016.08.28


This study analyzed and verified panel data based on CSMAR (China Stock Market & Accounting Research) DB from 2002 to 2014 in order to find out significant differences of conservative accounting before and after Chinese companies adopted international accounting standards. Financial changes in companies can occur at the point of change in accounting standards, and as the difference would affect conservative accounting, it is important to understand conservatism in financial transaction. In this study, earnings per share and price, return on equity, and debt ratio were measured. As a result of analysis, conservative accounting has increased after the introduction of accounting standards, and as the debt ratio was higher, the proportion of conservative accounting was higher. Thus, at a certain point of change in accounting standards, companies apply conservative accounting in order to improve reliability in an unstable future financial environment. Therefore, this study is expected not only to practically influence business practice in changes in GAAP rules but also to provide useful guidance for future studies.


Supported by : 부산대학교


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