New Accounting Standards Influence on Earnings Conservatism of Listed Companies in China

The earnings conservatism is an important prerequisite for rational investors who make decisions. China's new accounting standards clearly spelled out the conservatism as one of quality requirements of accounting information for the first time. This paper examines the influence of china's new accounting standards on the earnings conservatism of listed companies, results shows that: 1)The earnings of listed companies in china have kept conservative from 2006 to 2008???2)After the implementation of the new accounting standards, china's listed companies earnings conservatism has decreased. Though the public company conservatism has improved in 2008 compared with 2007, it is not significant.