Accounting conservatism is an important aspect of financial reporting quality. Considering the tradeoff between … relevance and reliability of the accounting information, it is argued that the level of conservatism of financial reports is … conservatism. Overall findings show a positive association between provisions reported under IAS-37 Provisions, Contingent …

information system: accrual reversal and accounting conservatism. This relationship is analyzed using a moral hazard model in a … considered in the long term, accounting conservatism as an information bias was found to be an optimal choice for the principal … information system is low; however, accounting conservatism could never be used as an information bias under a single-period or …

We empirically test the association between conditional conservatism and cost of equity capital. Conditional … conservatism imposes stronger verification requirements for the recognition of economic gains than economic losses, resulting in … significant negative relation between conditional conservatism and excess average stock returns over the period 1975-2003. This …

We study the interrelation between conservatism and earnings management by examining the allowance for uncollectible … become more conservative over time. Conservatism may, however, facilitate earnings management. We find that firms manage bad … that conservatism accentuates the extent to which firms manage bad debt expense. Further, we find that firms manage bad …

conditional conservatism. Specifically, we study the level of accounting conservatism before and after IFRS adoption detailing for … significant differences in conservatism in Nordic countries. Another finding is a significant decrease in the level of … conservatism after IFRS adoption. Regarding the joint impact of IFRS adoption and economic conditions, we find a decrease in …

This study analyzes the relation between accounting conservatism, future tax rate cuts and countries' level of book …-tax conformity. Firms have an incentive to increase conservatism in financial reporting when a tax rate cut is imminent to shift … conditional conservatism is positively and significantly associated with future tax rate cuts when book-tax conformity is high …

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 … evidence that Big 4 audits are not associated with the degree of conditional conservatism. Finally, we show that reporting …

In this paper, I present evidence that the asymmetry in cash flows biases standard measures of conditional conservatism … distinguish whether the lower persistence of earnings is due to accounting conservatism or a result of real activities. Third, I …

We examine whether and how accounting conservatism plays a disciplinary role in corporate layoffs. Analyzing 722 layoff … conservatism mitigates such inefficiency in layoff decisions. Further analyses confirm that the positive relation between … conservatism and layoff efficiency is mainly driven by mitigation of the extent of under-hiring from layoffs. Finally, we find that …

We investigate how local political corruption shapes corporate financial reporting conservatism. Using a large sample … greater accounting conservatism. This finding is robust to several endogeneity checks, including the propensity score matching …. Further analysis reveals that the positive effect of corruption on conservatism is stronger for firms with less bargaining …