We examine the effectiveness of China's IFRS adoption from the perspective of an important set of financial report users, foreign institutional investors. We find that foreign institutional investment does not increase after China's IFRS adoption, and some evidence that it actually declines,...

In emerging markets, the deviation between the ultimate controlling shareholders' voting rights and their cash flow rights (hereafter 'DVC') in the listed firms is quite prevalent. DVC could be introduced due to the ultimate controlling shareholders' opportunistic incentives, as well as by their...