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Globalization, transparency and economic growth: The vulnerability of Chinese firms to macroeconomic shocks

Oxelheim, Lars LU (2010) In Journal of Asian Economics 21(1). p.66-75
Abstract
The process of globalization encompasses economic and financial integration. The abolition of capital controls and the dismantling of barriers of different kinds will expose previously sheltered companies to shocks originating in the global economic arena. Policymakers in already globalized countries have learned that market participants should be prepared in due time to meet the new exposure to fluctuating rates of exchange, interest and inflation. China has recently adopted a version of the International Financial Reporting

Standards (IFRS) in an effort to improve the quality of information available for risk management and for pricing of risk. This paper analyzes the gains in transparency from the implementation of IFRS in... (More)
The process of globalization encompasses economic and financial integration. The abolition of capital controls and the dismantling of barriers of different kinds will expose previously sheltered companies to shocks originating in the global economic arena. Policymakers in already globalized countries have learned that market participants should be prepared in due time to meet the new exposure to fluctuating rates of exchange, interest and inflation. China has recently adopted a version of the International Financial Reporting

Standards (IFRS) in an effort to improve the quality of information available for risk management and for pricing of risk. This paper analyzes the gains in transparency from the implementation of IFRS in Europe as of January 2005 and reports no improvements in regard to the macroeconomic impact on firms. Based on this experience, improvements for Chinese adoption are suggested. The paper presents a framework for how to understand and measure the impact of different scenarios on corporate performance. It also elaborates on how to communicate themacroeconomic effects to external stakeholders of the firm in a way that should foster further economic growth in China. (Less)
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author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Macroeconomic impact, Economic growth, International Financial Reporting Standards, Transparency, Globalization
in
Journal of Asian Economics
volume
21
issue
1
pages
66 - 75
publisher
Elsevier
external identifiers
  • Scopus:72449167917
ISSN
1049-0078
DOI
10.1016/j.asieco.2009.05.004
language
English
LU publication?
yes
id
187b11a5-77a3-471f-9fba-100f114d27a5 (old id 1522992)
date added to LUP
2010-09-22 11:14:49
date last changed
2016-10-13 04:30:38
@misc{187b11a5-77a3-471f-9fba-100f114d27a5,
  abstract     = {The process of globalization encompasses economic and financial integration. The abolition of capital controls and the dismantling of barriers of different kinds will expose previously sheltered companies to shocks originating in the global economic arena. Policymakers in already globalized countries have learned that market participants should be prepared in due time to meet the new exposure to fluctuating rates of exchange, interest and inflation. China has recently adopted a version of the International Financial Reporting<br/><br>
Standards (IFRS) in an effort to improve the quality of information available for risk management and for pricing of risk. This paper analyzes the gains in transparency from the implementation of IFRS in Europe as of January 2005 and reports no improvements in regard to the macroeconomic impact on firms. Based on this experience, improvements for Chinese adoption are suggested. The paper presents a framework for how to understand and measure the impact of different scenarios on corporate performance. It also elaborates on how to communicate themacroeconomic effects to external stakeholders of the firm in a way that should foster further economic growth in China.},
  author       = {Oxelheim, Lars},
  issn         = {1049-0078},
  keyword      = {Macroeconomic impact,Economic growth,International Financial Reporting Standards,Transparency,Globalization},
  language     = {eng},
  number       = {1},
  pages        = {66--75},
  publisher    = {ARRAY(0x86d07a8)},
  series       = {Journal of Asian Economics},
  title        = {Globalization, transparency and economic growth: The vulnerability of Chinese firms to macroeconomic shocks},
  url          = {http://dx.doi.org/10.1016/j.asieco.2009.05.004},
  volume       = {21},
  year         = {2010},
}