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.