Roychowdhury, Sugata; Martin, Xiumin - In: Journal of Accounting and Economics 56 (2013) 2, pp. 134-146
Various studies have investigated variation in reporting conservatism with pre-specified contractual incentives. Lawrence et al. (forthcoming), hereafter LSS, propose a model to control for “normal” or “non-discretionary” conservatism while testing for variation in conservatism with...