Regional accounting conservatism and macroeconomic growth: evidence from China

Wanyi Chen; Hong Luo; Yongliang Zeng; Xiangfang Zhao

Regional accounting conservatism and macroeconomic growth: evidence from China

Wanyi Chen ^[1] ; Hong Luo ^[2] ; Yongliang Zeng ^[3] ; Xiangfang Zhao ^[4]
1. [1] Shanghai University
  
  Shanghai University
  
  China
2. [2] Southwestern University of Finance and Economics
  
  Southwestern University of Finance and Economics
  
  China
3. [3] Hunan University
  
  Hunan University
  
  China
4. [4] Shanghai Lixin University of Accounting and Finance, Shanghai, China
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Localización: Revista española de financiación y contabilidad, ISSN 0210-2412, Vol. 53, Nº 1, 2024 (Ejemplar dedicado a: Accounting for the good: the role of accounting in fostering SDGs implementation and achievement in the public sector), págs. 26-49
Idioma: inglés
DOI: 10.1080/02102412.2023.2284470
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Resumen
- The quality of accounting information determines whether such information can serve as an effective basis for rational macroeconomic regulation and investment decisions. Studying accounting conservatism is crucial because it plays a pivotal role in shaping the macroeconomic landscape. This study examines the impact of accounting conservatism on the speed and quality of macroeconomic growth in emerging markets. Our findings indicate that regional accounting conservatism can hinder the speed of macroeconomic growth but enhance its overall quality. This effect is channelled primarily through aggregate corporate profits, total factor productivity level, and dispersion. Further analysis reveals that this relationship is more pronounced in regions characterised by high financial marketisation, weak government intervention, and well-developed intermediary markets. This study significantly enriches our understanding of the macroeconomic consequences of accounting conservatism in emerging markets and provides valuable insights into future macroeconomic trends at both the quantitative and qualitative levels.
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