Abstract
This research aims to explore the relationship between changes in accounting standards and accrual-based earnings management in Chinese listed A-share firms. Specifically, this paper focuses on CAS 14, an accounting standards amendment closely related to revenue recognition under IFRS 15, introduced by the Ministry of Finance of the People’s Republic of China. By analyzing a comprehensive sample of 25,309 observations spanning the years 2014 to 2021, this paper reveals compelling evidence that Chinese firms exhibit reduced utilization of accrual-based earnings management after the adoption of CAS 14 in 2018.
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