Pre and Post IFRS Convergence Effect on Earnings Quality and Firm Valuation: A Case of Chinese Manufacturing Sector
DOI:
https://doi.org/10.5281/zenodo.14292444Keywords:
Earning Quality, Firm Valuation, Convergence, IFRSAbstract
Purpose: The objectives of the research is to investigate the pre and post IFRS convergence effect on earning quality and firm valuation of Chinese manufacturing firms.
Design/Methodology/Approach: The study employs random effect regression analysis on the panel data of 390 firms of Chinese manufacturing sector for the period of 1999-2018 by dividing data into pre and post IFRS convergence sets.
Findings: The research shows that post IFRS and CAS convergence have significant positive impact on overall performance of Chinese SOE and NSOE listed firms in China. The results of research find clear improvements in the earnings quality and value of firm as a result of convergence.
Implications/Originality/Value: The study has important implications for researchers, academicians and corporate sector which seek to enhance the value of firms that international standards significantly contribute in the value creation.
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