IDEAS home Printed from https://ideas.repec.org/a/ags/reapec/264590.html
   My bibliography  Save this article

The Usefulness Of Segment Reporting In Hong Kong Listed Firms: An Empirical Assessment Of Ifrs No. 8

Author

Listed:
  • Li, Yuanyuan
  • Roudaki, Jamal
  • Gan, Christopher

Abstract

IFRS 8 and its counterpart HKFRS 8 supersedes IAS 14 and HKAS 14 in 2006 to upgrade segment information disclosure that is increasingly becoming important financial information in investment decision making. There is little understanding of the changes in the quality of firms’ segment disclosure as a consequence of implementing the new standard in Hong Kong’s unique political and economic environment. This study attempts to document the usefulness of segment information disclosure by Hong Kong listed firms as a consequence of implementing HKIFRS 8. The study employs the value relevance of accounting information theory as a measure of usefulness of segment disclosure where segmental data are analysed by the portfolio return approach and regression analysis. The purposive sampling method is used to obtain samples from Hong Kong listed firms. The study results indicate that implementation of HKIFRS 8 has improved the usefulness of segment information disclosed by Hong Kong listed firms.

Suggested Citation

  • Li, Yuanyuan & Roudaki, Jamal & Gan, Christopher, 2013. "The Usefulness Of Segment Reporting In Hong Kong Listed Firms: An Empirical Assessment Of Ifrs No. 8," Review of Applied Economics, Lincoln University, Department of Financial and Business Systems, vol. 9(1-2), January.
    • Handle: RePEc:ags:reapec:264590
    DOI: 10.22004/ag.econ.264590
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/264590/files/RAE%202013%20Yuanyuan%20Li%2C%20Jamal%20Roudaki%20and%20Christopher%20Gan.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.264590?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Mary E. Barth & Wayne R. Landsman & Mark H. Lang, 2008. "International Accounting Standards and Accounting Quality," Journal of Accounting Research, Wiley Blackwell, vol. 46(3), pages 467-498, June.
    2. Thinggaard, Frank & Damkier, Jesper, 2008. "Has financial statement information become less relevant? Longitudinal evidence from Denmark," Scandinavian Journal of Management, Elsevier, vol. 24(4), pages 375-387, December.
    3. Francis, J & Schipper, K, 1999. "Have financial statements lost their relevance?," Journal of Accounting Research, Wiley Blackwell, vol. 37(2), pages 319-352.
    4. Philip G. Berger & Rebecca Hann, 2003. "The Impact of SFAS No. 131 on Information and Monitoring," Journal of Accounting Research, Wiley Blackwell, vol. 41(2), pages 163-223, May.
    5. Hung, Mingyi, 2000. "Accounting standards and value relevance of financial statements: An international analysis," Journal of Accounting and Economics, Elsevier, vol. 30(3), pages 401-420, December.
    6. Lev, B, 1989. "On The Usefulness Of Earnings And Earnings Research - Lessons And Directions From 2 Decades Of Empirical-Research," Journal of Accounting Research, Wiley Blackwell, vol. 27, pages 153-192.
    7. Jenice Prather-Kinsey & Gary Meek, 2004. "The effect of revised IAS 14 on segment reporting by IAS companies," European Accounting Review, Taylor & Francis Journals, vol. 13(2), pages 213-234.
    8. Keryn Chalmers & Greg Clinch & Jayne M Godfrey, 2011. "Changes in value relevance of accounting information upon IFRS adoption: Evidence from Australia," Australian Journal of Management, Australian School of Business, vol. 36(2), pages 151-173, August.
    9. Brennan, Michael J & Jegadeesh, Narasimhan & Swaminathan, Bhaskaran, 1993. "Investment Analysis and the Adjustment of Stock Prices to Common Information," The Review of Financial Studies, Society for Financial Studies, vol. 6(4), pages 799-824.
    10. Alford, A & Jones, J & Leftwich, R & Zmijewski, M, 1993. "The Relative Informativeness Of Accounting Disclosures In Different Countries," Journal of Accounting Research, Wiley Blackwell, vol. 31, pages 183-223.
    11. Fama, Eugene F & French, Kenneth R, 1995. "Size and Book-to-Market Factors in Earnings and Returns," Journal of Finance, American Finance Association, vol. 50(1), pages 131-155, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dechow, Patricia & Ge, Weili & Schrand, Catherine, 2010. "Understanding earnings quality: A review of the proxies, their determinants and their consequences," Journal of Accounting and Economics, Elsevier, vol. 50(2-3), pages 344-401, December.
    2. Keryn Chalmers & Greg Clinch & Jayne M Godfrey, 2011. "Changes in value relevance of accounting information upon IFRS adoption: Evidence from Australia," Australian Journal of Management, Australian School of Business, vol. 36(2), pages 151-173, August.
    3. Lam, Kevin C.K. & Sami, Heibatollah & Zhou, Haiyan, 2013. "Changes in the value relevance of accounting information over time: Evidence from the emerging market of China," Journal of Contemporary Accounting and Economics, Elsevier, vol. 9(2), pages 123-135.
    4. Cordeiro Moreira, Jeíce Catrine & Lima, Gerlando A.S.F. & Góis, Alan Diógenes, 2019. "Effects of institutional factors on the accruals anomaly in Latin America," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 36(C), pages 1-1.
    5. Beisland, Leif Atle & Hamberg, Mattias, 2013. "Earnings sustainability, economic conditions and the value relevance of accounting information," Scandinavian Journal of Management, Elsevier, vol. 29(3), pages 314-324.
    6. Demmer, Matthias, 2015. "Improving profitability forecasts with information on earnings quality," Discussion Papers 2015/16, Free University Berlin, School of Business & Economics.
    7. Shan, Yuan George, 2015. "Value relevance, earnings management and corporate governance in China," Emerging Markets Review, Elsevier, vol. 23(C), pages 186-207.
    8. Tahat, Yasean A. & Alhadab, Mohammad, 2017. "Have accounting numbers lost their value relevance during the recent financial credit crisis?," The Quarterly Review of Economics and Finance, Elsevier, vol. 66(C), pages 182-191.
    9. Jihene Chedlia Soussi, 2012. "Impact of Voluntary Disclosure on the Relevance of Accounting Information," Journal of Education and Vocational Research, AMH International, vol. 3(5), pages 138-153.
    10. Kim, Oksana, 2013. "Russian Accounting System: Value Relevance of Reported Information and the IFRS Adoption Perspective," The International Journal of Accounting, Elsevier, vol. 48(4), pages 525-547.
    11. S. P. Kothari & Charles Wasley, 2019. "Commemorating the 50‐Year Anniversary of Ball and Brown (1968): The Evolution of Capital Market Research over the Past 50 Years," Journal of Accounting Research, Wiley Blackwell, vol. 57(5), pages 1117-1159, December.
    12. Pathiranage, Nandana P.W. & Jubb, Christine A., 2018. "Does IFRS make analysts more efficient in using fundamental information included in financial statements?," Journal of Contemporary Accounting and Economics, Elsevier, vol. 14(3), pages 373-385.
    13. Christian Leuz & Peter D. Wysocki, 2016. "The Economics of Disclosure and Financial Reporting Regulation: Evidence and Suggestions for Future Research," Journal of Accounting Research, Wiley Blackwell, vol. 54(2), pages 525-622, May.
    14. Eng, Li Li & Sun, Li & Vichitsarawong, Thanyaluk, 2013. "The valuation properties of earnings and book values reported under IAS, domestic GAAP and U.S. GAAP: Evidence from China, Hong Kong, Japan, Korea and Singapore," Advances in accounting, Elsevier, vol. 29(2), pages 278-285.
    15. Veith, Stefan & Werner, Jörg R., 2014. "Comparative Value Relevance Studies: Country Differences Versus Specification Effects," The International Journal of Accounting, Elsevier, vol. 49(3), pages 301-330.
    16. Chen, Peter & Zhang, Guochang, 2007. "How do accounting variables explain stock price movements? Theory and evidence," Journal of Accounting and Economics, Elsevier, vol. 43(2-3), pages 219-244, July.
    17. Landsman, Wayne R. & Maydew, Edward L. & Thornock, Jacob R., 2012. "The information content of annual earnings announcements and mandatory adoption of IFRS," Journal of Accounting and Economics, Elsevier, vol. 53(1), pages 34-54.
    18. Nadia Sbei Trabelsi & Mohamed Trabelsi, 2014. "The Value Relevance of IFRS in the UAE Banking Industry: Empirical Evidence from Dubai Financial Market, 2008-2013," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 4(4), pages 60-71, October.
    19. Joliet, Robert & Muller, Aline, 2016. "Are foreign earnings disclosures value-relevant?," Research in International Business and Finance, Elsevier, vol. 37(C), pages 170-183.
    20. Goncharov, Igor & Werner, Joerg R. & Zimmermann, Jochen, 2009. "Legislative demands and economic realities: Company and group accounts compared," The International Journal of Accounting, Elsevier, vol. 44(4), pages 334-362, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:reapec:264590. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aelinnz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.