Srivastava, Anup; Sunder, Shyam V.; Tse, Senyo - In: China journal of accounting research : CJAR 8 (2015) 3, pp. 147-167
suggest that timely loss recognition in accounting earnings enables lenders, shareholders, and boards of directors to identify …. However, this conjecture has not been tested empirically. Consistent with this notion, we find that timely loss recognition … increases the likelihood of timely closures of unprofitable projects. Moreover, managers, by announcing late discontinuations of …