Emerging Chinese status in international accounting standard setting: A social network analysis of the International Accounting Standards Board

ABSTRACT

This study employs a network analysis with centrality measures to trace China’s evolving position within the International Financial Reporting Standards (IFRS) governance network. The analysis spans from 2001 to 2021, revealing the shifts in China’s position from a marginal to a more central one in the IFRS governance network. The benefit of information and control across the network empowers China to emerge as an important force influencing the operations of the International Accounting Standards Board (IASB) and IFRS development. The findings contribute to our understanding of the political dynamics in international accounting regulations. Insights gleaned from China’s experience offer implications for other jurisdictional constituents aspiring to amplify their influence in IFRS development. While acknowledging certain limitations in the study, this research concludes by advocating for a deeper exploration of China’s representation role in the IASB’s decision-making process.

Keywords:

• IASB
• China
• political power
• social network analysis

Disclosure Statement

No potential conflict of interest was reported by the author(s).