Lawrence, Alastair; Sloan, Richard; Sun, Yuan - In: Journal of Accounting and Economics 56 (2013) 2, pp. 112-133
A large body of accounting research finds that various contracting incentives lead managers to engage in conservative … accounting practices. We extend existing research by modeling the impact of extant accounting rules on conservative accounting …. Accounting rules typically require assets to be written down when their fair values drop sufficiently below their book values. We …