the 12-month period subsequent to the accrual reporting; hence, future informational efficiency increases with the extent …

based on the signaling motive. When we introduce a limit on the degree of earnings management (as a proxy for the regulatory … power), earnings management are used more often as a signalling device. In the treatments with limit, reported earnings …

In this paper, we offer a new theory for the economic demand of accounting conservatism, which emphasizes the signaling … signing the debt contract. In developing this signaling theory of conservatism, our paper achieves two major outcomes: (1) we … definition of conservatism; (2) we develop a signaling model of the debt market, where accounting conservatism serves as a …