This paper investigates the effect of institutional quality on sustainable development.Institutional quality is assumed to determine the (perceived) risk in the face of which oil and mining firms determine their level of investment in physical and natural capital. Since these two types of...

We investigate how high-profile accounting frauds affect peer firms' investment. We document that peers react to the fraudulent reports by increasing investment during fraud periods. We show that this finding is not driven by frauds that have a higher ex ante likelihood of detection or by an...

In 2008 Clayton Christensen, Stephen Kaufman and Willy Shih pointed the accusatory finger of wrong investment decisions to: ill documented cost information, incorrect application of financial decision making tools and short termism. Given that we have little literature systematically documenting...

This paper examines the effect of accounting conservatism on firm-level investment during the 2007-2008 global financial crisis. Using a differences-in-differences design, we find that firms with less conservative financial reporting experienced a sharper decline in investment activity following...

The role of accounting conservatism in corporate governance to mitigate agency problems associated with managers' investment decisions is proposed by Watts (2003), Ball and Shivakumar (2005) and Ahmed and Duellman (2010). In this research, we hypothesize that if accounting conservatism reduces...

This paper examines the link between managerial overconfidence, conservative accounting and investment. Using Japanese firm data, we estimate a q investment model incorporating real options effects. Consistent with prior studies, we find that managerial overconfidence increases investment--cash...

This study investigates the effect of accounting conservatism on corporate investment decisions in China. Specifically, we analyze how accounting conservatism affects a company's investment decision-making. Furthermore, we examine the difference in this effect of accounting conservatism on...