Abstract
ABSTRACT The paper investigates the question of whether diversity between national accounting and disclosure practices and regulations affect the business decisions of major foreign users of financial statements. The study focuses on the use by United Kingdom multinational companies (MNCs) of Chinese joint venture financial statements. Of the 100 largest UK MNCs, nine are involved in joint venture businesses in China. Questionnaires, together with interviews, were used to collect data about UK MNCs. The main conclusions, subject to the inherent limitations of the study, are that: 1) most UK MNCs in the sample rely heavily on the financial statements of Chinese joint ventures in making business decisions; and 2) accounting differences do affect UK MNC's decisions, particularly in determining the value of existing joint ventures.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.