Abstract:
The aim of this thesis is to demonstrate whether the convergence with International Financial Reporting Standards (IFRS) in China has had an influence on the increase in Foreign Direct Investment (FDI) inflow into the country. In order to do so, the historical context of accounting in China from its origins up to the present day will be studied, putting it in parallel with the FDI situation through time. The existing body of literature will then be analyzed, also by confronting China’s situation with one of the other emerging countries. Ultimately, we will focus on the policies implemented by the Chinese government in order to guarantee the opening of the nation, always from an accounting point of view. The final data analysis will let us affirm that IFRS convergence in China actually led to an increase in the stock of inward FDI, even if it is complicated to isolate the accounting sector from the rest of the changes that developed in Chinese society.
