Blockchain adoption and corporate financial reporting quality

IF 3.3 3区管理学 Q1 BUSINESS, FINANCE

Journal of Accounting and Public Policy Pub Date : 2024-11-30 DOI:10.1016/j.jaccpubpol.2024.107265

Ke Liao , Le Lin , Yukun Sun

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引用次数: 0

Abstract

We study the impact of blockchain technology on corporate financial reporting quality based on the staggered implementation of blockchain-based e-invoice systems by provincial and municipal governments in China since 2018. Using a difference-in-differences approach with a sample of listed firms in China from 2016 to 2022, we find that the accrual quality and earnings informativeness improve post-adoption. This treatment effect is more pronounced for firms with more complex operations and those located in technologically advanced and market-oriented environments, but is similar across firms with varying earnings management incentives. Blockchain adoption is associated with fewer error-related accounting restatements, but not with non-error-related restatements or corporate tax avoidance. Furthermore, blockchain adoption is associated with increased stock liquidity, improved analyst forecast consensus, and lower cost of equity. Overall, our results suggest that the blockchain adoption improves corporate financial reporting quality by enhancing accounting function efficiency rather than deterring potential manipulations.

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来源期刊

Journal of Accounting and Public Policy Multiple-

CiteScore

4.80

自引率

2.80%

发文量

期刊介绍： The Journal of Accounting and Public Policy publishes research papers focusing on the intersection between accounting and public policy. Preference is given to papers illuminating through theoretical or empirical analysis, the effects of accounting on public policy and vice-versa. Subjects treated in this journal include the interface of accounting with economics, political science, sociology, or law. The Journal includes a section entitled Accounting Letters. This section publishes short research articles that should not exceed approximately 3,000 words. The objective of this section is to facilitate the rapid dissemination of important accounting research. Accordingly, articles submitted to this section will be reviewed within fours weeks of receipt, revisions will be limited to one, and publication will occur within four months of acceptance.