Accounting Paper

The current issue and all-encompassing text archive of this book of account is available at www.emeraldinsight.com/1321-7348.htm ARA 16,2 Accounting conservatism in greater China: the in?uence of institutions and incentives Fan-Hua (Alex) Kung Chinese Culture University, Taipei, chinaware 134 Chih-Wen Ting Nanhua University, Chayi, Taiwan, and Kieran James civilize of Accounting, Economics & Finance, University of Southern Queensland, Toowoomba, Australia snare Purpose The aim of the look into is to uptake variations in measurable account statement conservatism to gain a deeper understanding close to the reportage incentives created by a areas institutional structure. Design/methodology/approach geographical proximity, cultural af?nity and compound economic relations provide Greater China with a unique setting for studying cross country differences in institutional characteristics which affect the demand for accounting conservatism. clustering a nd Shivakumar have sex that the economic role of conditional conservatism is an pregnant place of ?nancial reporting quality because it improves the ef?ciency of contracting, reduces information asymmetry and improves bodied governance.

Findings The observational results indicate that Hong Kong is the most nonprogressive prudence, followed by Taiwan and China, implying that the statutory/judicial system, regulatory environment and political economy of divers(prenominal) countries are the pivotal forces which drive accounting conservatism. Overall, the conclusion suggests that a countrys institutional struc tures interact strongly with reporting ince! ntives in determining accounting conservatism. Originality/value This research examines cross-country differences in ?nancial reporting quality by contrastive the in?uence of country-speci?c institutional factors on ?nancial reporting incentives for conservative accounting practices. It is expected that this research will have weighty form _or_ system of government implication. Keywords Accounting, Financial reporting, China...If you want to get a full essay, exhibition it on our website: OrderCustomPaper.com

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