Some Accounting Consequences of Business Control by Overseas Chinese
AbstractThis paper discusses some of the accounting consequences associated with the control of business enterprises by â€œoverseas Chinese" in the context of ï¬ve ASEAN countries. Based on extant research, overseas Chinese controlled business enterprises exhibit six characteristics with distinguish them Western multinational companies (MNCs): a family- centric corporate structure; exposure to diverse industries and commercial undertakings; a propensity to source ï¬nancing â€œin-houseâ€, increasing links with foreign MNCs though joint venture arrangements while attempting to maintain decision-making control locally; attitude towards intangible versus tangible assets; and decision-making which â€˜emphasises the use of balance sheets and cash ï¬‚ow statements. These characteristics raise questions regarding the applicability and appropriateness of Westem-based accounting standards and regulatory structures in regard to consolidation accounting based on legalistic notions of control, the practice of assigning values to intangible assets, and the decision-usefulness of ï¬nancial statements which use arbitrary cost allocations. The discussion here suggests that accounting practice in different national settings needs to be understood in terms ofunique set of cultural and organisational values.
How to Cite
Authors who publish with this journal agree to the following terms:
1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).