Value Relevance of Accounting Information: Evidence from an Emerging Market

Tamer Elshandidy

Research output: Contribution to journalArticle (Academic Journal)peer-review

19 Citations (Scopus)


Without making any distinction of the applicable accounting standards, this paper investigates, firstly, the value relevance of accounting information from 1999 to 2012 in different segments of the Chinese stock market. This investigation includes A-shares, prepared under Chinese Accounting Standards (CAS) for domestic firms; B-shares, prepared under either the International Accounting Standards (IAS) or International Financial Reporting Standards (IFRS) for both domestic and overseas firms; and H-shares prepared under either the IAS or Hong Kong GAAP for Hong Kong and overseas firms. Then, the paper examines whether or not the converged IFRS with CAS, applicable from 2007 onwards, is more value relevant when compared with prior to the 2007’s standards (CAS, IAS, Hong Kong GAAP for A-, B-, and H-share markets, respectively). Based on 34,020 firm-year observations and after controlling for industry- and year-fixed effects, the findings suggest that accounting information is value relevant with A- and B-share markets, whilst it is partially relevant with the H-share market. The paper finds that the converged IFRS with CAS is more value relevant in A- and B-shares and it is partially more value relevant with the H-share market. These findings have implications for both policymakers and investors since they provide further empirical evidence for the current policy procedure which harmonizes local GAAP with IFRS.
Original languageEnglish
Pages (from-to)176-186
Number of pages10
JournalAdvances in Accounting
Issue number1
Early online date26 Jun 2014
Publication statusPublished - Jun 2014


  • A-, B- and H-shares; Converged IFRSs, CAS; Value Relevance


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