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The impact of mandatory IFRS adoption on disclosure of macroeconomic risks by public firms in China

Petryashova, Elena and Li, Lin (2011)
Department of Business Administration
Abstract
This paper presents the first empirical study on Chinese firms’ disclosure of macroeconomic risks. We study the impact of mandatory IFRS adoption in 2007 on listed Chinese firms’ disclosure of macroeconomic risks. 45 out of 100 firms improved their quality of disclosure in their 2010 annual report compared to 2005 (or 2006).We also find that that firms which employ Big 4 audit firms, belong to financial services industry or have already implemented IFRS voluntarily before 2007 are more likely to improve their disclosure of macroeconomic influence. Despite the improvement, none of the firms in our sample reaches the satisfactory level of macroeconomic risks disclosure that can help outsiders filter out impact of macroeconomic fluctuation... (More)
This paper presents the first empirical study on Chinese firms’ disclosure of macroeconomic risks. We study the impact of mandatory IFRS adoption in 2007 on listed Chinese firms’ disclosure of macroeconomic risks. 45 out of 100 firms improved their quality of disclosure in their 2010 annual report compared to 2005 (or 2006).We also find that that firms which employ Big 4 audit firms, belong to financial services industry or have already implemented IFRS voluntarily before 2007 are more likely to improve their disclosure of macroeconomic influence. Despite the improvement, none of the firms in our sample reaches the satisfactory level of macroeconomic risks disclosure that can help outsiders filter out impact of macroeconomic fluctuation and understand the intrinsic performance of the firm. In terms of level of disclosure in 2010, firms employing Big 4, early adopters, larger firms and firms within financial services industry are more likely to have higher level of disclosure, which is consistent with previous studies. (Less)
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author
Petryashova, Elena and Li, Lin
supervisor
organization
year
type
H1 - Master's Degree (One Year)
subject
keywords
Disclosure, IFRS adoption, China, Macroeconomic risks, Transparency, Management of enterprises, Företagsledning, management
language
Swedish
id
2058243
date added to LUP
2011-06-01
date last changed
2012-04-02 18:51:40
@misc{2058243,
  abstract     = {This paper presents the first empirical study on Chinese firms’ disclosure of macroeconomic risks. We study the impact of mandatory IFRS adoption in 2007 on listed Chinese firms’ disclosure of macroeconomic risks. 45 out of 100 firms improved their quality of disclosure in their 2010 annual report compared to 2005 (or 2006).We also find that that firms which employ Big 4 audit firms, belong to financial services industry or have already implemented IFRS voluntarily before 2007 are more likely to improve their disclosure of macroeconomic influence. Despite the improvement, none of the firms in our sample reaches the satisfactory level of macroeconomic risks disclosure that can help outsiders filter out impact of macroeconomic fluctuation and understand the intrinsic performance of the firm. In terms of level of disclosure in 2010, firms employing Big 4, early adopters, larger firms and firms within financial services industry are more likely to have higher level of disclosure, which is consistent with previous studies.},
  author       = {Petryashova, Elena and Li, Lin},
  keyword      = {Disclosure,IFRS adoption,China,Macroeconomic risks,Transparency,Management of enterprises,Företagsledning, management},
  language     = {swe},
  note         = {Student Paper},
  title        = {The impact of mandatory IFRS adoption on disclosure of macroeconomic risks by public firms in China},
  year         = {2011},
}