Please use this identifier to cite or link to this item:
|Other Titles:||Political Restrictions on Investments in China and Asymmetric Timeliness of Earnings|
Restrictions on investment in China;Political costs;Accounting conservatism;Accounting conservatism
|Issue Date:||2016-06-01 14:16:00 (UTC+8)|
The study investigates whether asymmetric timeliness of earnings will increase with the amount of investments in China. The government in Taiwan has attempted to brake the rapid expansion of commercial ties by placing some restrictions on investments in China. The government restricts cumulative investments in China to 20-40% of a firm’s shareholder equity, depending on the firm’s size. Following Basu (1997), accounting conservatism would impose stronger verification requirements for the recognition of economic gains than for the recognition of economic losses, leading to accounting earnings that reflect bad news more quickly than good news. Watts (2003) argues that conservatism can reduce the political costs imposed on standard setters and regulators. The results show that asymmetric timeliness increases as the investments in China increase, supporting Watts (2003).
International Journal of Accounting Studies
|Appears in Collections:||[會計評論] 期刊論文|
Files in This Item:
All items in 學術集成 are protected by copyright, with all rights reserved.