Conservative Accounting, IFRS Convergence and Cash Dividend Payments: Evidence from China


Journal Article

© 2017 John Wiley & Sons, Ltd. We investigate the governance role of conservative accounting in mitigating the creditor–stockholder conflict by affecting firms’ dividend policies, and how the convergence to International Financial Reporting Standards (IFRS) affects the governance role of conservative accounting as it relates to dividend policy. We analyze data on Chinese listed firms from 2000 through 2011. The use of conservative accounting reduced cash dividend payouts, thereby playing a governance role by mitigating the firm's creditor–stockholder agency conflict. However, China's convergence to IFRS reduced the governance role of conservative accounting on dividend policy by reducing the accounting conservatism of listed firms in China.

Full Text

Duke Authors

Cited Authors

  • Bradford, W; Chen, C; Zhu, S

Published Date

  • June 1, 2017

Published In

Volume / Issue

  • 23 / 3

Start / End Page

  • 376 - 414

Electronic International Standard Serial Number (EISSN)

  • 1468-036X

International Standard Serial Number (ISSN)

  • 1354-7798

Digital Object Identifier (DOI)

  • 10.1111/eufm.12114

Citation Source

  • Scopus