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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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    File URL: http://www.accessecon.com/Pubs/EB/2009/Volume29/EB-09-V29-I3-P57.pdf
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    References listed on IDEAS

    as
    1. Haidan Li & Morton Pincus & Sonja Olhoft Rego, 2008. "Market Reaction to Events Surrounding the Sarbanes-Oxley Act of 2002 and Earnings Management," Journal of Law and Economics, University of Chicago Press, vol. 51(1), pages 111-134, February.
    2. repec:bla:joares:v:6:y:1968:i:2:p:159-178 is not listed on IDEAS
    3. Armitage, Seth, 1995. " Event Study Methods and Evidence on Their Performance," Journal of Economic Surveys, Wiley Blackwell, vol. 9(1), pages 25-52, March.
    4. A. Craig MacKinlay, 1997. "Event Studies in Economics and Finance," Journal of Economic Literature, American Economic Association, pages 13-39.
    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. repec:bla:joares:v:21:y:1983:i:1:p:184-221 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Hong Kong Accounting Standard 40; Event Window; Stock Return.;

    JEL classification:

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

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