Accounting Paper

The current issue and all-encompassing text archive of this diary 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, china 134 Chih-Wen Ting Nanhua University, Chayi, Taiwan, and Kieran James civilize of Accounting, Economics & Finance, University of Southern Queensland, Toowoomba, Australia countermand Purpose The aim of the look into is to uptake variations in mensural write up conservatism to gain a deeper understanding well-nigh the describe incentives created by a areas institutional structure. Design/methodology/approach geographical proximity, cultural af?nity and integrated 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 and Shivakumar lo ve that the economic role of conditional conservatism is an pregnant charge of ?nancial reporting quality because it improves the ef?ciency of contracting, reduces information asymmetry and improves bodied governance.

Findings The a posteriori results indicate that Hong Kong is the most nonprogressive prudence, followed by Taiwan and China, implying that the judicial/judicial system, regulatory environment and political economy of diametrical countries are the pivotal forces which drive accounting conservatism. Overall, the conclusion suggests that a countrys institutional structures interact strongly with reporting incentives in determining account! ing 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 indemnity implication. Keywords Accounting, Financial reporting, China...If you want to get a full essay, position it on our website: OrderCustomPaper.com

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