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Is the Convergence of Accounting Standards Good for Stock Markets?

Author

Listed:
  • Terence Tai-Leung Chong

    (Department of Economics, The Chinese University of Hong Kong)

  • Winnie S. C. Leung

    (School of Accountancy, The Chinese University of Hong Kong)

  • Rita W. Y. Yip

    (School of Accountancy, The Chinese University of Hong Kong)

  • Howard Z. Huang

    (School of Accountancy, The Chinese University of Hong Kong)

Abstract

This paper examines the impact of the convergence of Hong Kong Accounting Standard 40 (HKAS 40) with the International Financial Reporting Standard (IFRS) on the stock prices of firms in the property industry. Using a sample of 22111 firm-day observations, we show that the new standard has a negative impact on the stock performance of these firms.

Suggested Citation

  • Terence Tai-Leung Chong & Winnie S. C. Leung & Rita W. Y. Yip & Howard Z. Huang, 2009. "Is the Convergence of Accounting Standards Good for Stock Markets?," Economics Bulletin, AccessEcon, vol. 29(3), pages 2079-2085.
    • Handle: RePEc:ebl:ecbull:eb-08m40002
    as

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    References listed on IDEAS

    as
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    2. Ball, R & Brown, P, 1968. "Empirical Evaluation Of Accounting Income Numbers," Journal of Accounting Research, Wiley Blackwell, vol. 6(2), pages 159-178.
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    5. Fama, Eugene F, et al, 1969. "The Adjustment of Stock Prices to New Information," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 10(1), pages 1-21, February.
    6. Schipper, K & Thompson, R, 1983. "The Impact Of Merger-Related Regulations On The Shareholders Of Acquiring Firms," Journal of Accounting Research, Wiley Blackwell, vol. 21(1), pages 184-221.
    7. Fama, Eugene F & French, Kenneth R, 1995. "Size and Book-to-Market Factors in Earnings and Returns," Journal of Finance, American Finance Association, vol. 50(1), pages 131-155, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Hong Kong Accounting Standard 40; Event Window; Stock Return.;
    All these keywords.

    JEL classification:

    • M4 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting
    • N2 - Economic History - - Financial Markets and Institutions

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    Access and download statistics

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