IFRS and the financial performances of Chinese listed firms in the financial industry

Abstract

As more countries recognize and adopt IFRS (International Financial Reporting Standard). IFRS was widely adopted by Chinese Listed Companies in 2007. This article uses the data of 2006-2007 and 2008-2009 in the sample of Listed Companies in China's financial industry to do empirical test of the impact of the adoption of IFRS on corporate financial performance. Empirical results suggest that the adoption of IFRS improved the accounting quality of Chinese listed firms. Although IFRS adoption has positive impact on the financial performance of China financial listed firms, the influence is not significant as predicted. The reasons may be the particularity of financial industry and the financial firms already have higher requirement for accounting standards. The actual situation needs further study to confirm.