Accounting Standards Convergence And Overseas Listing

The level of internationalization of accounting standards reflects the degree of a country’s economy and the world fusion, the difference between Chinese accounting standards and international major economies will cause a certain obstacle of C hinese companies in foreign investors to understand and evaluate the financial position and operating results, affect foreign investors investing in China’s enterprises and C hinese enterprises in overseas capital market financing. Therefore, the international convergence of accounting standards is the inevitable choice of a country’s economic development under the capital and the economic globalization.Before 2007, our country’s accounting standards is put in bigger difference with international accounting standards adopted by the capital market, which make our country enterprise prepare financial report in accordance with the requirements of the international capital market. This work greatly increased the workload and disclosure of information processing cost, virtually increased the cost of Chinese enterprises listed overseas. Accounting information communication problems from differences in accounting standards have become a big obstacle to C hina’s enterprises to overseas listing.China’s new accounting standards Implemented in 2007 have achieved substantial convergence with international accounting standards. Accounting standards have a certain economic consequences, it can affect the specification of the accounting information to influence decisions of managers and investors, thus influence enterprise on the capital market allocation of resources and distribution of interests. But, so far, the research about the reform of the economic consequences of accounting internationalization in our country, can see literature investigation is to study the influence of domestic capital markets, have not seen empirical evaluation about the impact of foreign capital market research on standards convergence. Therefore, this article revolves this one theme of the international convergence of accounting standards in China with overseas financing ", research the impact of our country accounting standards convergence on foreign equity financing cost, observe the effect of the reform of accounting internationalization in our country through the overseas capital markets, analyze the related factors of affecting our country accounting standards convergence implementation effect. Through the study,the international community have better understanding of C hina’s international convergence of accounting standards, and for the internationalization of accounting standards in our country to reform and perfect for the further development of providing a more comprehensive and scientific theoretical support and empirical evidence.The economic consequences of accounting standards mainly includes: the accounting information quality, information asymmetry and the cost of capital. This article study the economic consequences of China’s accounting standards convergence in the perspective of the cost of capital for China’s enterprises in the international capital market financing. From 2007, Chinese companies began to implement new accounting standards, its financial reports, in territory of the output is not directly send to the foreign investors, foreign investors before and after 2007 saw financial report from overseas listed companies in our country is still in accordance with local accounting standards required by the foreign capital market disclosure of financial report, therefore, the reform of C hina’s accounting standards for the influence of outside financing just has a direct impact on the listing fees and other direct costs, and for the influence of equity capital cost is only by signaling to foreign investors, the indirect way of conduction through foreign investors understand feedback to influence its investment decisions, which affect the cost of capital of overseas financing.Empirical analysis on the main conclusions are as follows: First, after the standard convergence, our country enterprise overseas IPO direct financing costs rise sharply, did not support the hypothesis.Converge the reason may be due to the standards during the year before and after the change of the total amount of enterprise financing, listed the distribution of the capital market and industrial distribution, and so on and so forth affect the standards convergence for direct financing cost effect. Second, in the control of the related factors affecting the cost of capital, the international convergence of accounting standards in C hina significantly promoted the listed abroad as a decline in the cost of equity capital, strong support the hypothesis.The effective implementation of accounting standards depends on its political, legal and economic environment, and is complement each other and the environment.These environmental factors can influence the formulation and implementation of accounting standards and indirect influence on accounting information quality, can be seen, the same accounting standards, running in a different environment, different execution effect will appear.Therefore, the institutional environment as external factors affecting criterion executed, should be sufficient attention.For overseas financing, to make our country accounting information quality brought by the international convergence of accounting standards improve the signal function fully transfer and the effect, make foreign investors can effectively identify and accept this signal, so as to improve the efficiency of C hinese enterprises in overseas capital markets, have to strengthen the construction of standards to perform internal and external environment, so as to achieve the new guidelines "coupling" with the existing environment, realize its implementation effect, specific Suggestions are as follows:(1) perfect the internal control, financial reporting is the escort standards convergence;(2) through integration of regulatory enhance supervision efficiency;(3) to improve the quality of the accounting professional organization self-discipline and personnel.