 Does Market Welcome the International Convergence of Fair Value Standard in China?Dehong Wang, Jianbo Song and Yue Zhang Applied Finance and Accounting, 2017, vol. 3, issue 2, 1-13 Abstract: This paper studies the international convergence of fair value measurement standard and examines market reactions towards the emergence of the standard in China. Through comparing the fair value measurement standard between IFRS 13 and newest Chinese accounting standard CAS 39, we find that CAS 39 is on the way of international convergence towards IFRS 13. Through examining market reactions to CAS 39, we find that market has significantly positive reactions to the draft version exposure, official announcement, and enforcement of CAS 39. Moreover, we find that investors have different attitudes to the applications of CAS 39 in financial and non-financial industries. Investors consistently support CAS 39 in non-financial industries. However, in financial industries, investors react positively in the draft version exposure of CAS 39, but negatively in the official announcement and enforcement of CAS 39. We believe that investors worry about the application of CAS 39 in Chinese financial industries. Keywords: market reaction; international convergence; fair value measurement; IFRS (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:rfa:afajnl:v:3:y:2017:i:2:p:1-13 Access Statistics for this article More articles in Applied Finance and Accounting from Redfame publishing Contact information at EDIRC. |
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