We study the information consequences of conservatism in accounting. Prior research shows that information asymmetries in capital markets lead to firm-level increases in conservatism. In this paper, we further argue that increases in conservatism improve the firm information environment and lead...

<heading id="h1" level="3" format="inline" implicit="no">Abstract: </heading>Is earnings management affecting (driving) the measures of earnings conservatism?<link rid="b1">Ball et al. (2000)</link> point out that the asymmetry in the recognition of good and bad news in earnings (faster recognition of bad news: earnings conservatism) is more pronounced in common-law than in...