This paper investigates the association between investor sentiment and accounting conservatism. We find that managers … have deemphasized accounting conservatism in recent years … recognize economic losses in earnings in a more timely manner during periods of high investor sentiment. Further, the sentiment-conservatism …

selects a degree of accounting conservatism in order to signal its own operating risk to the capital market. Consistent with … likely to adopt a higher level of accounting conservatism than are firms with a higher level of operating risk. This finding …This paper empirically tests the relation between a firm's degree of accounting conservatism and its level of operating …

The prior literature indicates that financial policy (e.g., payout policy) as well as accounting policy (e ….g., conservatism) can be used to address incentive problems in firms but finds mixed evidence. We conjecture that stock repurchases, an … increasingly popular form of payout, and conservatism are potential mechanisms to counter managerial propensity to engage in …

accounting conservatism and the use of collateral are negatively related, after controlling for firm performance and risk. The …We examine the relation between the use of collateral and accounting conservatism for a sample of Chinese firms during … 2001 to 2006. China provides a powerful setting for testing the direct effect of accounting conservatism on collateral …

We investigate changes in financial reporting conservatism arising from disclosure-related shareholder lawsuits filed … between 1996 and 2016. We find that sued firms respond to 10b-5 litigation with increased accounting conservatism. Consistent … with a spillover effect, we also find that non-sued peer firms increase accounting conservatism following litigation …

We study the links between conditional conservatism and voluntary disclosure of management private information. We … argue that conditional conservatism acts as a mechanism that lends credibility to voluntary disclosure by providing a hard … reporting benchmark that allows outsiders to better evaluate the truthfulness of management forecasts. Studying US firms, we …