Results 161 to 170 of about 6,285 (209)

Corporate Suppliers and Customers and Accounting Conservatism

SSRN Electronic Journal, 2011
Abstract We argue that a firm's suppliers and customers prefer it to account more conservatively due to information asymmetry and these stakeholders' asymmetric payoffs with respect to the firm's performance. We predict that a firm meets this demand for accounting conservatism when suppliers or customers have bargaining advantages over it that enable
Hui, K.W., Klasa, S., Yeung, P.E.
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Share Repurchases and Accounting Conservatism

SSRN Electronic Journal, 2019
The prior literature indicates that financial policy (e.g., payout policy) as well as accounting policy (e.g., conservatism) can be used to address incentive problems in firms but finds mixed evidence. We conjecture that stock repurchases, an increasingly popular form of payout, and conservatism are potential mechanisms to counter managerial propensity
Gerald J. Lobo, Ashok Robin, Kean Wu
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Conservatism in Accounting

SSRN Electronic Journal, 2003
This paper examines conservatism in accounting. Conservatism is defined as the differential verifiability required for recognition of profits versus losses. In its extreme form the definition incorporates the traditional conservatism adage: "anticipate no profit, but anticipate all losses." Despite criticism from many quarters, including standard ...
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Accounting Conservatism and Risk Culture

2017
This chapter studies the relationships between accounting conservatism and bank solidity, both of which have a close relation with risk culture. Analysing a sample of 100 European listed entities that belong to the financial sector observed over the period of 2014–2015 (e.g., 200 firm-year observations), this research tests the hypothesis that a ...
Mechelli A, Cimini R
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Accounting reforms and conservatism in earnings: Empirical evidence from listed Chinese companies

Journal of International Accounting, Auditing and Taxation, 2018
We examine the effects of the two major accounting reforms of 2001 and 2007 in China on conservatism in earnings using a variety of measures to ascertain the existence of conservatism and to gauge its degree.
Sihai Li, Huiying Wu, Parmod Chand
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Accounting conservatism and managerial information acquisition

Journal of Accounting and Economics, 2020
We study the interaction between strategic managerial information acquisition and shareholders' optimal degree of conservative accounting. Conservative accounting results in more frequent early warnings that allow lenders or corporate boards to take corrective actions, but also increases the risk of false alarms and excessive interventions.
Christian Laux, Volker Laux
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Corporate Governance, Accounting Conservatism, and Manipulation

Management Science, 2017
We develop a model to analyze how board governance affects firms’ financial reporting choices and managers’ incentives to manipulate accounting reports. In our setting, ceteris paribus, conservative accounting is desirable because it allows the board of directors to better oversee the firm’s investment decisions. This feature of conservatism, however,
Judson Caskey, Volker Laux
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Complex Ownership Structures and Accounting Conservatism

SSRN Electronic Journal, 2012
This study examines the use of accounting conservatism in firms with multiple controlling owners. In particular, we investigate the association between dispersion of cash-flow rights among controlling shareholders and accounting conservatism as well as how ownership type differences among controlling shareholders, family ownership, and legal ...
Haw, In-Mu, Ho, Simon S. M., Tong, Jamie Yixing, Zhang, Feida (Frank)   +3 more
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Value of Cash Holdings and Accounting Conservatism

SSRN Electronic Journal, 2011
We posit that accounting conservatism could mitigate the value destruction associated with increases in cash holdings. Consistent with this conjecture, we find that the market value of an additional dollar in cash holdings increases in accounting conservatism.
Urcan, O, Louis, H, Sun, A X
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Loan Sales and Borrowers’ Accounting Conservatism

Contemporary Accounting Research, 2017
ABSTRACTWe examine whether initial loan sales in the secondary loan market relate to borrowing firms’ accounting conservatism. We find that borrowing firms exhibit a significant decline in accounting conservatism after the initial loan sales. We show that the decline in borrower conservatism is more pronounced for firms that borrow from lenders with ...
Saiying Deng, Yutao Li, Gerald J. Lobo, Pei Shao   +3 more
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