International Differences in Disclosure Adequacy: Empirical Evidences from Annual Reports of French and Chinese Companies


Advances in International Accounting

2002, vol. 15, pp.155-179

Departments: Accounting & Management Control

The adequacy of information disclosure by a company in ifs annual report depends on the local circumstances. By comparing the annual reports of large French and Chinese listed companies, this paper shows that in comparison with their Chinese counterparts, French listed companies are more user-friendly as regards information demands. French annual reports are bigger in volume and fuller in content, while Chinese annual reports tend to be more homogeneous both in volume and content. As faT as the depreciation period for fixed assets is concemed, except for buildings, which have a similar depreciation period in both countries, French companies apply significantly shorter depreciation periods for their industrial equipment, tools, transport equipment and fumiture. Regarding disclosure adequacy, French firms publish more information about their technological innovations, corporate stock, segment eamings and revenues, indebtedness and environmental protection, whereas Chinese companies