This study examines the relation between narrative risk disclosures and accounting conservatism by utilizing the SEC … hypothesize that RFDs likely affect firms' financial reporting choice in accounting conservatism in two ways, the substitutive … effect and the stimulative effect. On the one hand, RFDs may substitute for conservatism by revealing important information …

For a large sample of U.S. listed firms, we find that unconditional and conditional accounting conservatism help lower … bankruptcy risk. We further find that the mitigating effect of accounting conservatism on bankruptcy risk functions via cash … enhancement and earnings management mitigation channels. This evidence is relevant to accounting standards setting, financial …

There is a strand of CAPM based analytical research in accounting that uncovers a little known CAPM corollary, namely … generally the payoffs expression of CAPM, has deeply interesting and useful connotations for accounting firm … that the firm's cost of capital is a joint effect of its payoff risk and payoff mean. The CAPM equilibrium mechanism has …

Whether and how accounting information quality affects the cost of capital has been a matter of much debate. We … contribute to this debate by linking accounting information quality to systematic risk, inspired by recent theoretical … accounting information quality is significantly and negatively related to systematic risk. This relation is robust to alternative …