Value relevance of proportionate consolidation versus the equity method: Evidence from Hong Kong

China Journal of Accounting Research - Tập 11 - Trang 255-278 - 2018
Stella So1, Kar Shun Wong1, Feida (Frank) Zhang2, Xu Zhang3
1Department of Accountancy and Law, Hong Kong Baptist University, Hong Kong, China
2Business School, University of Queensland, Australia
3Department of Accounting and Information Management, University of Macau, Macau, China

Tài liệu tham khảo

Aboody, 1999, Revaluations of fixed assets and future firm performance, J. Account. Res., 36, 161, 10.2307/2491312 Accounting Principles Board (APB, which in 1973 was replaced by the Financial Accounting Standards Board, FASB), 1971. APB Opinion 18 The equity method of accounting for investments in common stock. APB Opinion, New York, AICPA. Amir, 1993, A comparison of the value-relevance of US versus non-US GAAP accounting measures using Form 20-F reconciliations, J. Account. Res., 31, 230, 10.2307/2491172 Ball, 1968, An empirical evaluation of accounting income numbers, J. Account. Res., 6, 159, 10.2307/2490232 Ball, 1991, Security returns around earnings announcements, Account. Rev., 66, 718 Barth, 1994, Fair value accounting: Evidence from investment securities and the market valuation of banks, Account. Rev., 69, 1, 10.2308/TAR-2019-0521 Barth, 2001, The relevance of the value relevance literature for financial accounting standard setting: Another view, J. Account. Econ., 31, 77, 10.1016/S0165-4101(01)00019-2 Barth, 1998, Revalued financial, tangible, and intangible assets: Associations with share prices and non-market-based value estimates, J. Account. Res., 36, 199, 10.2307/2491314 Bauman, 2007, Proportionate consolidation versus the equity method: Additional evidence on the association with bond ratings, Int. Rev. Financial Anal., 16, 496, 10.1016/j.irfa.2007.06.005 Bauman, 2003, The impact and valuation of off-balance-sheet activities concealed by equity method accounting, Account. Horizons, 17, 303, 10.2308/acch.2003.17.4.303 Beaver, 1981 Beaver, 1978, What determines price-earnings ratios?, Financial Anal. J., 34, 65, 10.2469/faj.v34.n4.65 Bierman, 1992, Proportionate consolidation and financial analysis, Account. Horizons, 6, 5 Brown, 1987, An evaluation of alternative proxies for the market’s assessment of unexpected earnings, J. Account. Econ., 9, 159, 10.1016/0165-4101(87)90004-8 Brown, 1998, Capital market research and accounting standard setting, Account. Finance, 38, 5, 10.1111/1467-629X.00002 Brown, 1980, Measuring security price performance, J. Financ. Econ., 8, 205, 10.1016/0304-405X(80)90002-1 Cheung, 2007, Do investors really value corporate governance? Evidence from Hong Kong market, J. Int. Financial Manage. Account., 18, 86, 10.1111/j.1467-646X.2007.01009.x Christie, 1987, On cross-sectional analysis in accounting research, J. Account. Econ., 9, 231, 10.1016/0165-4101(87)90007-3 Davies, 1999, Financial reporting of significant-influence equity investments: Analysis and managerial issues, J. Managerial Issues, 11, 280 Deloitte, 2008. IASB agenda project: Joint ventures. IAS PLUS, available at http://www.iasplus.com/agenda/jv.htm. Dieter, 1978, The expanded equity method – An alternative in accounting for investments in joint ventures, J. Accountancy, 145, 89 Easton, 1991, Earnings as an explanatory variable for returns, J. Account. Res., 29, 19, 10.2307/2491026 Fama, 1998, Market efficiency, long-term returns and behavioral finance, J. Financ. Econ., 49, 283, 10.1016/S0304-405X(98)00026-9 Fan, 2002, Corporate ownership structure and the informativeness of accounting earnings in East Asia, J. Account. Econ., 33, 401, 10.1016/S0165-4101(02)00047-2 Feld, K.P., Breker, N., 2008. Comment letter from The Institute Accountants in Germany (IDW). Comment on IASB Exposure Draft ED 9 Joint Arrangements, available at http://www.idw.de/idw/download/Comment_Letter_ED9.pdf?id=425608&property=Datei. Graham, 2003, Decision usefulness of alternative joint venture reporting methods, Account. Horizons, 17, 123, 10.2308/acch.2003.17.2.123 Gujarati, 2008 Hair, 2009 Haw, 1999, Value relevance of earnings in an emerging capital market: The case of A-shares in China, Pacific Econ. Rev., 4, 337, 10.1111/1468-0106.00083 Heckman, 1976, Sample selection as a specification error, Econometrica, 47, 153, 10.2307/1912352 Hong Kong Institute of Certified Public Accountants (HKICPA), 2004. HKAS 31 Interests in joint ventures. Hong Kong Financial Reporting Standards, available at http://www.hkicpa.org.hk/hksaebk/HKSA_Members_Handbook_Master/volumeII/hkas31.pdf. Hong Kong Stock Exchange (HKSE), 2005 Hong Kong Stock Exchange (HKSE), 2006 Hong Kong Stock Exchange (HKSE), 2007 Hong Kong Stock Exchange (HKSE), 2008 Hong Kong Society of Accountants (HKSA, which in 2004 was renamed as Hong Kong Institute of Certified Public Accountants, HKICPA), 2001. SSAP 21 Accounting for interests in joint ventures. Statement of Standard Accounting Practice, available at http://www.hkicpa.org.hk/professionaltechnical/accounting/rm/withdrawn/ ssap21.pdf. Hu, 2014, Does accounting conservatism improve the corporate information environment?, J. Int. Account., Auditing Taxation, 23, 32, 10.1016/j.intaccaudtax.2014.02.003 International Accounting Standards Board (IASB), 2011. IASB Work Plan – Projected Timetable as at 1 February 2011, available at http://www.iasb.org/Current+Projects/IASB+Projects/IASB+Work+Plan.htm. International Accounting Standards Committee (IASC, which in 2001 was renamed as International Accounting Standards Board, IASB), 1990. IAS 31 Financial reporting of interests in joint ventures. International Accounting Standards, London, IASC. International Accounting Standards Committee Foundation (IASCF, which in 2010 was renamed as International Financial Reporting Standards Foundation, IFRSF), 2007. ED 9 Joint arrangements, IASB Exposure Draft, London, IASCF. International Accounting Standards Committee Foundation (IASCF, which in 2010 was renamed as International Financial Reporting Standards Foundation, IFRSF), 2007. Basis for conclusion on ED 9 Joint arrangements. IASB Exposure Draft, London, IASCF. International Accounting Standards Committee Foundation (IASCF, which in 2010 was renamed as International Financial Reporting Standards Foundation, IFRSF), 2007. Introduction on ED 9 Joint arrangements. IASB Exposure Draft, London, IASCF. International Accounting Standards Committee Foundation (IASCF, which in 2010 was renamed as International Financial Reporting Standards Foundation, IFRSF), 2010. IAS 31 Interests in joint ventures. International Financial Reporting Standards 2010 Bound Volume, London, IASCF. International Accounting Standards Committee Foundation (IASCF, which in 2010 was renamed as International Financial Reporting Standards Foundation, IFRSF), 2010. Preface to International Financial Reporting Standards. International Financial Reporting Standards 2010 Bound Volume, London, IASCF. International Accounting Standards Committee Foundation (IASCF, which in 2010 was renamed as International Financial Reporting Standards Foundation, IFRSF), 2010. IAS 28 Investments in associates. International Financial Reporting Standards 2010 Bound Volume, London, IASCF. International Financial Reporting Standards Foundation (IFRSF), 2010 Jakobsen, 2003, Post-acquisition performance in the short and long run: Evidence from the Copenhagen stock exchange 1993–1997, Eur. J. Finance, 9, 323, 10.1080/1351847031000074475 Jiang, 2006, A re-examination of technology transfer in Sino-foreign joint ventures after China’s WTO accession, J. Am. Acad. Business, Cambridge, 9, 133 King, 1994, An examination of financial reporting alternatives for associated enterprises, Adv. Account., 11, 1 Knorr, L., 2008. Comment letter from Accounting Standards Committee of Germany. Comment on IASB Exposure Draft ED 9 Joint Arrangements, available at http://www.standsetter.de/drsc/docs/press_releases/080107_cl_ED9.pdf. Kocan, 1962, Reporting the operations of jointly owned companies, J. Account., 113, 54 Koh, 1991, Joint venture formations and stock market reaction: An assessment in the information technology sector, Acad. Manage. J., 34, 869, 10.2307/256393 Kothari, 1995, Price and return models, J. Account. Econ., 20, 155, 10.1016/0165-4101(95)00399-4 Kothavala, 2003, Proportionate consolidation versus the equity method: A risk measurement perspective on reporting interests in joint ventures, J. Account. Public Policy, 22, 517, 10.1016/j.jaccpubpol.2003.10.001 Landsman, 1986, An empirical investigation of pension fund property rights, Account. Rev., 61, 662 Lourenco, 2010, Determinants of the accounting choice between alternative reporting methods for interests in jointly controlled entities, Eur. Account. Rev., 19, 739, 10.1080/09638181003687844 Lyon, 1999, Improved methods for tests of long-run abnormal returns, J. Finance, 54, 165, 10.1111/0022-1082.00101 Maes, J.P., 2008. Comment letter from Belgian Accounting Standards Board. Comment on IASB Exposure draft ED 9 Joint arrangements, available at http://www.cnc-cbn.be /NL/News/2008/NL_New15-012008%20BASB%20Comment%20Letter%20on%20ED%20 9%20Joint %20 Arrangements%20IASB.pdf. Milburn, J.A., Chant, P.D., 1999. Reporting interests in joint ventures and similar arrangements. Financial Accounting Series No. 201-E Special Report, Norwalk, FASB/G4+1. Miller, 1997, The downside of harmonization haste: The equity accounting experience, Aust. Account. Rev., 7, 2, 10.1111/j.1835-2561.1997.tb00030.x Ministry of Finance of the People’s Republic of China (MOFPRC), 2001. Investments. Accounting Standards for Business Enterprises, available at http://www.casc.gov.cn/kjfg/ 200611/t20061115_489668.htm. Ministry of Finance of the People’s Republic of China (MOFPRC), 2006. ASBE 2 Long-term equity investments. Accounting Standards for Business Enterprises, available at http://www.casc.gov.cn/kjfg/200607/t20060703_337130.htm. Neuhausen, 1982, Consolidation and the equity method – time for an overhaul, J. Account., 153, 54 Nielsen, 1965, Reporting joint-venture corporations, Account. Rev., 40, 795 Nippa, 2007, Success factors for managing international joint ventures: A review and an integrative framework, Manage. Organization Rev., 3, 277, 10.1111/j.1740-8784.2007.00067.x Nobes, 2002, International development of the equity method, Abacus, 38, 16, 10.1111/1467-6281.00096 O’Hanlon, 2007, The value relevance of disclosures of liabilities of equity-accounted investees: UK evidence, Account. Business Res., 37, 267, 10.1080/00014788.2007.9663312 Ohlson, 1995, Earnings, book values and dividends in equity valuation, Contemp. Account. Res., 11, 661, 10.1111/j.1911-3846.1995.tb00461.x Penman, 2007 Reklau, 1977, Accounting for investments in joint ventures – A re-examination, J. Account., 144, 96 Soonawalla, 2006, Accounting for joint ventures and associates in Canada, UK and US: Do US rules hide information?, J. Business Finance Account., 33, 395, 10.1111/j.1468-5957.2006.00609.x Stoltzfus, 2005, An empirical study of the value-relevance of using proportionate consolidation accounting for investments in joint ventures, Accounting Forum, 29, 169, 10.1016/j.accfor.2004.10.001 White, 2003 White, 1980, A heteroskedasticity-consistent covariance matrix estimator and a direct test for heteroskedasticity Econometrica, J. Economet. Soc., 48, 817, 10.2307/1912934