New Accounting Standards and Earnings Conservatism

This article has selected Shanghai and Shenzhen A-share listed companies from 2004 to 2009 as a sample, adopted descriptive statistics and earnings stock return models tested the changes in accounting conservatism of companies before and after the implementation of new Chinese Accounting Standards. After analysis, some reforms in the new accounting standards, such as the transform of accounting objectives and the introduction of fair value measurement, will affect the accounting conservatism of enterprises. The result shows that: the implementation of the new accounting standards has reduced the accounting conservatism of enterprises.