We study the information consequences of conservatism in accounting. Prior research shows that information asymmetries … in capital markets lead to firm-level increases in conservatism. In this paper, we further argue that increases in … conservatism improve the firm information environment and lead to subsequent decreases in information asymmetries between firm …

We examine the effect of auditor conservatism on corporate innovation. We hypothesize that, because conservative … increased auditor conservatism on corporate innovation is more pronounced when the client firms are under greater equity- and …

We empirically test the association between conditional conservatism and cost of equity capital. Conditional … conservatism imposes stronger verification requirements for the recognition of economic gains than economic losses, resulting in … significant negative relation between conditional conservatism and excess average stock returns over the period 1975-2003. This …

We examine the effect of labor unemployment risk on corporate accounting conservatism by exploring the relationship … between unemployment insurance benefits and conservatism. We find that lower perceived unemployment risk (i.e. higher … unemployment insurance benefits) is associated with lower conditional conservatism. The effect is more pronounced when employees …

paper shows that therefore conservatism measures based on models of the asymmetric relationship between earnings and … extending conservatism models. This finding offers a partial explanation of why large firms are less conservative since firm … size and having defined benefit plans are positively correlated. Furthermore, extending conservatism models with dummy …

The concept of conditional conservatism has provided new insight into financial reporting and has stimulated … of possible bias in firm-level cross-sectional estimates of conditional conservatism (asymmetric earnings timeliness …) which they attribute to scale effects. They advise researchers to avoid using conditional conservatism estimates or making …

This paper empirically tests the relation between a firm's degree of accounting conservatism and its level of operating … accounting conservatism which is recently proposed by Wang, O hOgartaigh and van Zijl (2010), who argue that a firm optimally … selects a degree of accounting conservatism in order to signal its own operating risk to the capital market. Consistent with …

This study investigates the role of public debt financing in shaping accounting conservatism in privately held … companies. We focus on the change in conservatism of private firms following initial issuance of public debt and examine the … effects of agency conflicts between bondholders and shareholders on the change in conservatism. Regression analyses on a large …