An Empirical Study Of Earnings Conservatism Based On The New Accounting Standards

The new accounting standards issued by MOF P.R.China in 15 February,2006. Accounting conservatism is an important convention of financial reporting;It has become a character of information quality.This thesis tries to reveal the implementation results of the new accounting standards from the view of conservatism.The sample consists of the relevant data of Chinese listed companies in both year 2005,2006 and 2007.The paper uses three index analysis model to test the existence and changes of accounting conservatism.It included:whether the accounting conservatism exists in year 2005,2006 and 2007;What influence the new accounting standards has on the conservatism of accounting.The findings reveal that there exists asymmetry between"good news" and"bad news",and accounting earnings reflect"bad news'more quickly and reverse than"good news".Empirical results are as follows:Accounting conservatism exists in both year 2005,2006 and 2007.The implementation of the new accounting standards reduces the conservatism of accounting earnings from the single effect of the new accounting standards.