, conservatism is harmful. However, conservatism is beneficial if accounting is relevant to the monitoring decision because it … between conservatism and strong corporate governance through the board's monitoring efficiency. We construct a model with a … board that decides whether to replace the incumbent manager based on accounting information and the outcome of its …

This paper examines how the characteristics of accounting systems and management incentives interact and collectively … earnings quality increases in accounting precision. However, we also find counter-intuitive results, such as that an accounting … standard that makes unbiased accounting earnings more informative can reduce earnings quality. These results are mainly driven …

management accounting. Issues are whether a regulation is effective in achieving its objective, how it affects the organizational …

on conservatism of accounting standards and why conservatism can be welfare-enhancing even though it introduces a bias in …This monograph reviews economic models that study earnings management and conservatism in an information economics … potential remedies actually achieve in equilibrium. For example, accounting standards that reduce discretion for earnings …

A premise of standard setters and of much empirical research is that improving the quality of accounting standards and … situations in which “better”, i.e., more forward-looking, accounting standards reduce the information content of financial … reports. The reason is that a forward-looking accounting standard affects the smoothness of reported earnings, which can …