consequences of mandatory IFRS adoption in Europe in terms of accounting conservatism. Indeed, a mandatory adoption setting may … 4-audited companies; (2) correlatively, unconditional conservatism is higher under IFRS in the presence of a Big 4 … control for firm-level reporting incentives when gauging the effects of a change in accounting standards. However, companies …

This paper examines the impact of accounting conservatism and auditing conservatism on earnings quality. Four proxies … the interplay between accounting conservatism, auditing conservatism and earnings quality. The result reveals a positive … and significant effect of auditing conservatism on earnings quality but no significant effect of accounting conservatism …

Using a large sample of firms that report under mandatory IFRS from 51 countries, this study examines the association … between conditional conservatism, institutional quality, and Big 4 audits. We hypothesize and find that the degree of … conditional conservatism is higher in countries with better institutional quality. In contrast to popular belief, we provide …

We examine the effect of auditor conservatism on corporate innovation. We hypothesize that, because conservative … auditors constrain income-increasing accounting discretion, managers may sacrifice long-term investments in innovation to boost … increased auditor conservatism on corporate innovation is more pronounced when the client firms are under greater equity- and …

accounting systems that are stringent compared to the unobservable true outcome. This paper shows that risk aversion mitigates … this preference for stringent accounting systems. Specifically, in a principal-agent model where the principal can choose … between two accounting systems (ASs) with different biases, the optimal choice depends on the ranking of the overall …

validity test on accounting research. If the economic magnitude of the study's proxy for quality on firm value is “too large …