This study investigates the link between income smoothing behavior and the cost of bank loans. From the first analysis, this study finds that income smoothing behavior by management lowers the cost of bank loans. In addition to this first analysis, the current study also focuses on the...

We investigate the economic consequences of both conditional conservatism and unconditional conservatism from the perspective of stock market investors. Specifically, we empirically analyze how these two types of conservatism affect corporate investment levels, risk taking, and shareholder value...

This study analyzes the information contents of income smoothing behavior, especially the role of income smoothing behavior as a signal of future performance. What do smoothed earnings tell us about the future? To answer this research question, this paper focuses on earnings persistence and...