Manager’s Perception, Accounting Training and Chinese Tone

Abstract

The purpose of this paper is to measure if the undergraduates majored in accounting could more clear identification about management perception embedded in the Chinese financial reports. After comprehensive research designs and detailed questionnaires, this study finds that the more solid the accounting professional training, the more clearly the students interpret the financial statements, and the less likely they are to be disturbed by the language sentiment (tone) embedded in financial disclosures. Our findings contribute the importance of the socialized accounting education, which could minimize the level of misunderstanding by uninformed investors, and so do managers hold opportunism.