Globalization, transparency and economic growth: The vulnerability of Chinese firms to macroeconomic shocks

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractThe process of globalization encompasses economic and financial integration. The abolition of capital controls and the dismantling of barriers of different kinds will expose previously sheltered companies to shocks on the global economic arena. Policy-makers in already globalized countries have learned that market participants should be prepared in due time to meet the new exposure to fluctuating rates of exchange, interest and inflation. China has recently adopted a version of the International Financial Reporting Standards (IFRS) in an effort to improve the quality of information available for risk management and for pricing of risk. This paper analyzes the gains in transparency from the implementation of IFRS in Europe as of January 2005 and reports no improvements in regard to the macroeconomic impact on firms. Based on this experience, improvements for Chinese adoption are suggested. The paper presents a framework for how to understand and measure the impact of different scenarios on corporate performance. It also elaborates on how to communicate the macroeconomic effects to external stakeholders of the firm in a way that should foster further economic growth in China.

Stop Bashing: Chinese Firms Even Have Better Financial Reporting Quality

“…It has been noted in the literature and by the IASB that impressive progress has been made towards the convergence of the Chinese accounting standards with IFRS (Chen & Zhang, 2010;IASB, 2005IASB, , 2006Peng & Smith, 2010;Xiang, 1998). Oxelheim (2008) compares the 2007 adoption to the 2005 EU adoption of IFRS. Prior literature (Ball, 2006;Barth et al, 2006Barth et al, , 2008Daske et al, 2008;Gassen & Sellborn, 2006;Jermakowicz et al, 2007) suggests that adopting IFRS improves financial reporting quality and facilitates efficient capital market.…”

Towards a ″New″ Model of Economic Growth: Empirical Evidence from Romania′s Case

“…In the year 2005 took place the Initial Public Offering for NASDAQ New York, which happened by the merger with the biggest worldwide electronic platform, Archipelago Exchange Chicago, this way there was transformed the model for local transaction into a global operations model with 24 hours work frame. The new approaches based on new principles and criteria, that were in line with the technological, economic, social and environmental transformations [2][3][4][5][6][7][8][9][10] are elements that set pressure on the actual economic growth model.…”

“…Sustainable economic growth set under the globalization's pressure [2] the idea of the network economy, having as positive externalities obtaining access at new markets, especially the access to new clients (bigger demand, higher production), occupational modeling (decreasing unemployment in countries with a work force able to work on a wage below average of the same sector's wage in the host country or based on the outsourcing of some services in other countries, the host country having a wage cost lower than the paid wage in the home country of the outsourced service or product). A check point for the imported flow from the corporate framework is represented by keeping normal limits that do not harm the work force migration, the economic, social, educational disparities and the resources that are distributed equitable and efficient.…”