The impact of mandatory IFRS adoption on disclosure of macroeconomic risks by public firms in China
(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)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/2058243
- author
- Petryashova, Elena and Li, Lin
- supervisor
- organization
- year
- 2011
- 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 00:00:00
- 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}},
language = {{swe}},
note = {{Student Paper}},
title = {{The impact of mandatory IFRS adoption on disclosure of macroeconomic risks by public firms in China}},
year = {{2011}},
}