Globalization, transparency and economic growth: The vulnerability of Chinese firms to macroeconomic shocks
(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)
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/1522992
- author
- Oxelheim, Lars LU
- organization
- publishing date
- 2010
- 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
- 2016-04-04 09:26:34
- date last changed
- 2022-01-29 17:54:40
@article{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}},
keywords = {{Macroeconomic impact; Economic growth; International Financial Reporting Standards; Transparency; Globalization}},
language = {{eng}},
number = {{1}},
pages = {{66--75}},
publisher = {{Elsevier}},
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}},
doi = {{10.1016/j.asieco.2009.05.004}},
volume = {{21}},
year = {{2010}},
}