Purpose–The purpose of this paper is to analyze and examine the role of accounting conservatism on firm investment behavior in China. Design/methodology/approach–By combining a developed theoretical framework and empirical study, this paper examines the impacts of accounting conservatism on...

This paper examines the role of accounting conservatism on firm investment behavior in China. We find that the association between accounting conservatism and capital expenditure is significantly positive when inside capital is not enough to use for investment, suggesting that conservatism can...