Xu, Jingjing; Lu, Changjiang - In: China journal of accounting research : CJAR 1 (2008), pp. 11-29
This paper investigates the factors affecting the conservatism of accounting reports at the market-level and firm …-level. At the market-level, law and institutional factors explain conservatism, while at the firm-level contracting is the … driver. We predict and observe that while both levels jointly affect conservatism, it is firm-level factors that play a …