Identifying Points of Tension for Financial Reporting: China
Leon Jiang
Abstract
Financial reporting is an important and essential business practice in the world capital market to facilitate capital transactions internationally. It has developed in free-market context, where the effectiveness of this practice is underpinned by various institutional forces typical in this context. While it has been introduced in China, tensions might take place given a different political economy context. This situation may harm the international capital investment in Chinese companies and thus may become a major barrier for international capital movement to China.
The avenues where the tensions are identified are focused on the rationales as well as the fundamental driving forces of this practice.
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