Is the convergence of accounting standards good for stock markets?

Tai Leung, Terence CHONG, The Chinese University of Hong Kong
Winnie S. C. LEUNG, The Chinese University of Hong Kong
Wing Yue, Rita YIP, The Chinese University of Hong Kong
Howard Z. HUANG, The Chinese University of Hong Kong

Abstract

This paper examines the impact of the convergence of Hong Kong Accounting Standard 40 (HKAS 40) with the International Financial Reporting Standard (IFRS) on the stock prices of firms in the property industry. Using a sample of 22111 firm-day observations, we show that the new standard has a negative impact on the stock performance of these firms.