Results 251 to 260 of about 1,923 (289)

Debt Structure and Conditional Conservatism

Journal of Financial Reporting, 2019
ABSTRACT We investigate whether characteristics of firms' debt structure, beyond leverage and debt covenants, are associated with predictable variation in conditional conservatism. The contracting theory of conservatism holds that conditional conservatism is an efficient mechanism employed by an organization to address agency conflict ...
Hye Seung (Grace) Lee, Logan B. Steele
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Conditional Conservatism and Audit Fees

Accounting Horizons, 2014
SYNOPSIS In this study, we examine the impact of conditional conservatism on audit fees and, more importantly, the influence of corporate governance on this relationship. Prior literature presents evidence regarding explanations for the existence and pervasiveness of accounting conservatism such as compensation and debt contracting ...
Hye Seung (Grace) Lee, Xu Li, Heibatollah Sami   +2 more
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Debiasing the Measurement of Conditional Conservatism

Journal of Accounting Research, 2019
ABSTRACTBasu's [“The Conservatism Principle and the Asymmetric Timeliness of Earnings.” Journal of Accounting and Economics 24 (1997): 3–37] measurement of conditional conservatism as the asymmetric timeliness of earnings underlies hundreds of studies.
Marc Badia, Miguel Duro, Fernando Penalva, Stephen G. Ryan   +3 more
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Financial Constraint and Conditional Conservatism

Asia Europe Perspective Association, 2021
This study examines the relationship between financial constraints and conditional conservatism. Previous studies pointed out that the greater the financial constraints, the greater the involvement of managers in financial reporting, and tax avoidance to create cash flows within the firm is performed, which can intensify information asymmetry.
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Conditional Conservatism and Accrual Persistence

SSRN Electronic Journal, 2011
Under the conservative accounting principle, unreliable accruals are expected to reflect losses in a timely manner (Guay and Verrecchia 2006) and losses are less persistent (Basu 1997; Ball and Shivakumar 2006). Accordingly, the practice of accounting conservatism may cause lower persistence of unreliable accruals. This paper aims to provide an insight
Yutao Li, Wenjun Zhang
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Investor Sentiment and Conditional Accounting Conservatism

SSRN Electronic Journal, 2017
This paper investigates the impact of investor sentiment on conditional accounting conservatism. We find that companies recognize economic losses more (less) timely in earnings during periods of high (low) investor sentiment. Further, the sentiment-conservatism relationship is stronger for firms with greater sentiment-price sensitivity, which confirms ...
Rui Ge, Nicholas Seybert, Feida Zhang
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Evidence of Conditional Conservatism: Fact or Artifact?

SSRN Electronic Journal, 2009
The differential timeliness measure proposed in Basu (1997), which estimates the fraction of observed bad news reported in contemporaneous earnings minus the corresponding fraction for good news, has been used widely to study conditional accounting conservatism.
Panos N. Patatoukas, Jacob K. Kandathil Thomas   +1 more
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Conditional conservatism and persistence of accrual components

Canadian Journal of Administrative Sciences / Revue Canadienne des Sciences de l'Administration, 2015
AbstractWe examine whether conditional conservatism affects the persistence of accrual components associated with varying degrees of reliability. Using a sample of 102,416 firm‐year observations from 1968 to 2006, we found that conservatism reduces the persistence of more reliable accruals, but not less reliable accruals. Our evidence suggests managers'
Yutao Li, Wenjun Zhang
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Conditional Conservatism, Regulation, and Insolvency Risk

SSRN Electronic Journal, 2020
We develop a new method of assessing conditional conservatism using more detailed data available from the insurance industry. We look at how conditional conservatism affects insolvency risk and the financial strength rating of property-liability (P&L) insurance companies.
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Asset specificity and conditional accounting conservatism

Journal of Business Finance & Accounting, 2018
AbstractAsset specificity, the redeployability of an asset to alternative uses, is a key determinant of an asset's resale value. Asset specificity has a direct impact on a firm's ongoing fair value determination, bankruptcy risk, liquidation value, and abandonment option.
Qingyuan Li, Li Xu
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