This study explores the level of unconditional conservatism (UNCC) in accounting after China's convergence with International Financial Reporting Standards (IFRS). Using the intercept of the Basu (1997) model, an overall reduction is found in UNCC under the Chinese version of IFRS. This study is...

We use data from China to examine whether regulations that limit management influence over auditors improve audit quality. China's State-owned Assets Supervision and Administration Commission of the State Council (SASAC) issued two rules in 2004 aimed at improving audit quality for state-owned...

Chinese firms listing in the U.S. via reverse mergers (CRMs) have dominated prior media, regulator and research attention. Yet CRMs have effectively ceased, leaving Chinese firms listing via initial public offerings (CIPOs) as the relevant remaining class of Chinese firms listing on U.S....

Cost of capital is one of the most essential concerns in corporate finance. Anecdotal evidences and academic researches imply recent disclosure of key audit matter (KAM) required by the new audit standard may have unexpected implications on companies' cost of capital. I utilize the policy...

While the auditing profession in the USA and UK has developed ‘from the bottom up' over more than a century and a half, the Chinese profession has effectively been created ‘from the top down' in just over 20 years. Based mainly on information obtained from interviews we have conducted in...

Audit reports in China record the names of two signing auditors. Through co-signed audit reports, we observe auditor groups within large Chinese accounting firms. We find that these auditor groups are very stable over time. They act like autonomous units within accounting firms. They control...

We use the unique economic, legal, and political landscape of China to examine the impact of auditors on the incidence and consequences of accounting fraud. In particular, we examine whether large audit firms reduce the incidence of financial statement fraud in China, an emerging market in which...

Alibaba, the e-commerce giant that completed a record-setting IPO in the United States in 2014 and was valued at over $700 billion in early 2021, is one of hundreds of Chi-na-based firms listed in the United States whose controlling insiders are largely law-proof: the corporate and securities...

This study explores the level of unconditional conservatism (UNCC) in accounting after China's convergence with International Financial Reporting Standards (IFRS). Using the intercept of the Basu (1997) model, an overall reduction is found in UNCC under the Chinese version of IFRS. This study is...