In this paper, we offer a new theory for the economic demand of accounting conservatism, which emphasizes the signaling … role of conservatism in a debt market with asymmetric information. In our model, accounting conservatism serves as a signal … analytically derive four basic properties of accounting conservatism, based on Basu's (1997) asymmetric timeliness of earnings …

the relationship between financial constraints and accounting conservatism.Findings – The results show financially … constrained firms adopt less conditional conservatism practices on their accounting figures. In other words, those firms avoid to …Objective – This study investigates the effects of financial constraints on the conservatism practices of Brazilian …

reduces its costs. Our model predicts that stronger reporting oversight leads to greater accounting conservatism, manipulation … to manipulate accounting reports. In our setting, ceteris paribus, conservative accounting is desirable because it allows … the board of directors to better oversee the firm's investment decisions. This feature of conservatism, however, causes …

reduces its costs. Our model predicts that stronger reporting oversight leads to greater accounting conservatism, manipulation … to manipulate accounting reports. In our setting, ceteris paribus, conservative accounting is desirable because it allows … the board of directors to better oversee the firm's investment decisions. This feature of conservatism, however, causes …

Pension accounting is anything but conservative since earnings can be protected from actuarial gains and losses. This … 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 …

conservatism can reduce firms’ expected legal costs. Because managers with legal expertise are more likely than other managers to … recognize the legal benefits of conservatism, this study examines whether legal expertise among members of senior management … promotes greater conservatism. Consistent with this prediction, we find that firms with a general counsel (GC) in senior …

This study examines the relation between accounting conservatism and firms' capital structure adjustments. We find that …. Taken together, our findings suggest that accounting conservatism plays an important role in facilitating under … within firms that rely more on external financing for adjustments. Further, we find that the positive effect of conservatism …