44 The Effects of Split Share Structure on Accounting Conservatism—Evidence from Chinese Listed Firms Available to Purchase

In this paper, we examine the effects of split share structure in China on accounting conservatism. Using 5762 firm-years data about listed firms in China stock exchanges from 2001 to 2005, we find that the percentage of non-tradable share and the largest shareholder ownership have significantly negative effect on accounting conservatism. Demand from non-tradable shareholder is less than that from tradable shareholders in China.