How Blockchain Applications Affect Accounting Information Quality

A Longitudinal Case Study of SF Holding’s “Fengsu” Project

Abstract

This paper examines how blockchain applications influence accounting information quality through a longitudinal case study of SF Holding’s “Fengsu” project. Rather than assuming that blockchain automatically improves reporting quality, the study investigates how technological changes are connected with business processes and accounting outcomes. Based on annual reports from 2016–2020 and related data sources, the analysis evaluates seven aspects of accounting information quality, including reliability, conservatism, comparability, timeliness, internal-control assurance, external audit, and earnings predictability. The results indicate that blockchain adoption was associated with improvements in several areas. Discretionary accruals remained at a relatively low level, comparability gradually improved, and analyst forecast errors declined in the later period. However, improvements were not observed in every dimension: annual-report timeliness, audit opinions, and audit costs did not show the expected changes. The findings suggest that blockchain contributes mainly by improving data recording, process coordination, and evidence traceability, while its effects are limited by chain coverage, initial data quality, system integration, and organisational capabilities. Therefore, blockchain should be viewed as a supporting technology whose value depends on how closely it is connected with financial processes.