For the legal systems, Thailand is common law country while China is
code law country. Earnings in common law countries are more volatile, more informative,
and more closely-followed by investors and analysts. The common law makes standard
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setters as private sector responsibility. In addition, the private accounting professional
bodies in Thailand issue the accounting standards whilst the public sector issues the
accounting standards in China. Code law generally are less market-oriented, have large
proportionately government and unlisted private-company sectors. Earnings in code law
have lower volatility and lower informativeness (Ball, 2008).