Impact of IFRS full convergence in Hong Kong: Evidence on value relevance of earnings and auditor response : 香港会计准则与IFRS全面趋同的影响 : 基於盈馀的价值相关性和审计师反应的证据

Lixin SU, Sunny SUN, Jun YAO

Research output: Journal PublicationsJournal Article (refereed)


This study has two objectives. The fi rst is to investigate the impact of International Financial Reporting Standards (IFRS) adoption on the relevance of earnings for equity valuation. In this regard, the 2005 full convergence to IFRS in Hong Kong provides a natural experimental setting. The opportunity is that the 2005 fi lings of Hong Kong public fi rms require disclosure of information based on the new IFRS as well as on the former local Generally Accepted Accounting Principles (GAAP) [Non-IFRS]. The second objective is to examine whether, and if so how, auditors respond to the different risk exposure arising from the IFRS numbers through their pricing decisions. Our results on the IFRS convergence in Hong Kong suggest an improvement in the value relevance of earnings following convergence. Further, audit fees are more responsive to the new IFRS numbers than to the Non-IFRS numbers, consistent with the interpretation that auditors price their audit work in response to the different risk exposure under the new IFRS numbers.

本文的研究有兩個目的:第一個目的是研究國際財務報告準則(IFRS)的採用對 盈余相關性的影響。2005年標誌着香港會計準則與IFRS的全面趨同,要求上市公司 必須同時披露基於新的IFRS的和基於舊的香港公認會計準則的信息(非IFRS),也因 此為我們提供了一個研究機會。第二個目的是考查審計師是否以及怎樣通過他們的 定價決策來對評估IFRS所帶來的不同風險。研究結果表明,香港執行IFRS完全趨同 後,盈余的價值性相關性有所改善。而且,相對於非IFRS,審計費用對新的IFRS的 會計數據更敏感,這與審計師根據IFRS下不同的風險來定價的解釋一致。
Original languageEnglish
Pages (from-to)1-46
Number of pages46
JournalChina Accounting and Finance Review
Issue number4
Publication statusPublished - Dec 2009
Externally publishedYes


Bibliographical note

This article is written in bilingual : English and Chinese (simplified).


  • Value Relevance
  • IFRS
  • Reporting Quality
  • Audit Response
  • 價值相關性
  • 報告質量
  • 審計反應

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