This study provides empirical evidence on the value relevance of accounting information in different stock market segments of China. Using the available data of listed A‐, B‐, and H‐shares from 1999 to 2003, and based on the modified Ohlson model, the value relevance of accounting information is compared among different Chinese stock market segments. Further, important factors that might influence the value relevance of accounting information in the Chinese stock market (e.g., the percentage of total tradable shares [PTS] and the B‐share opening event of 2001) are studied in this paper. Four primary results are drawn from this study. First, the accounting information is value‐relevant in all the A‐, B‐, and H‐share markets, and the accounting information in the B‐ and H‐share markets is more value‐relevant than that of the A‐share market. Second, within the A‐share market, the value relevance of accounting information does not differ between firms issuing both AB‐ and AH‐shares and firms issuing only A‐shares. Within the A‐share market, firms with higher PTS do not enjoy higher value‐relevant accounting information than the firms with lower PTS. Last, our results indicate that the opening event of B‐shares to domestic investors in 2001 did indeed lower the value relevance of accounting information for B‐shares.
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Fall 2007
Research Article|
January 01 2007
Value Relevance of Accounting Information in Different Stock Market Segments: The Case of Chinese A‐, B‐, and H‐Shares
Jianwei Liu;
Jianwei Liu
Ph.D. Researcher at Vrije Universiteit Amsterdam.
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Chunjiao Liu
Chunjiao Liu
Assistant Professor at Shijiazhuang Railway Institute.
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Online ISSN: 1558-8025
Print ISSN: 1542-6297
American Accounting Association
2007
Journal of International Accounting Research (2007) 6 (2): 55–81.
Citation
Jianwei Liu, Chunjiao Liu; Value Relevance of Accounting Information in Different Stock Market Segments: The Case of Chinese A‐, B‐, and H‐Shares. Journal of International Accounting Research 1 January 2007; 6 (2): 55–81. https://doi.org/10.2308/jiar.2007.6.2.55
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