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...