Globalization, Transparency and Economic Growth: The Vulnerability of Chinese Firms to Macroeconomic Shocks
AbstractThe process of globalization encompasses economic and financial integration. Abolition of capital controls and dismantling of barriers of different kinds are important ingredients of the process that will entirely change the exposure of previously sheltered companies to shocks on the global economic arena. Lessons learned by policy-makers in already globalized countries are that market participants should be prepared to meet the new exposure to fluctuating exchange rates, interest rates and inflation rates. China has recently adopted International Financial Reporting Standards (IFRS) in her efforts to improve the quality of information available for risk management and for pricing of risk. This paper claims that further improvements are needed and presents a new framework for how to understand and measure the impact of different scenarios on corporate performance. It also elaborates on how to communicate the macroeconomic effects to external stakeholders of the firm in a way that fosters further economic growth in China.
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Bibliographic InfoPaper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 768.
Length: 26 pages
Date of creation: 24 Sep 2008
Date of revision:
Publication status: Published as Oxelheim, Lars, 'Globalization, Transparency and Economic Growth: The Vulnerability of Chinese Firms to Macroeconomic Shocks' in Journal of Asian Economics, 2010, pages 66-75.
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More information through EDIRC
International Financial Reporting Standards; Transparency; Economic Growth; Macroeconomic Impact; Globalization;
Other versions of this item:
- Oxelheim, Lars, 2010. "Globalization, transparency and economic growth: The vulnerability of Chinese firms to macroeconomic shocks," Journal of Asian Economics, Elsevier, vol. 21(1), pages 66-75, February.
- E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Capital; Investment; Capacity
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
- E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
- F15 - International Economics - - Trade - - - Economic Integration
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- F37 - International Economics - - International Finance - - - International Finance Forecasting and Simulation: Models and Applications
- G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
- G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
- L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
- M21 - Business Administration and Business Economics; Marketing; Accounting - - Business Economics - - - Business Economics
This paper has been announced in the following NEP Reports:
- NEP-ACC-2008-09-29 (Accounting & Auditing)
- NEP-ALL-2008-09-29 (All new papers)
- NEP-BEC-2008-09-29 (Business Economics)
- NEP-CNA-2008-09-29 (China)
- NEP-MAC-2008-09-29 (Macroeconomics)
- NEP-TRA-2008-09-29 (Transition Economics)
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