Jung, Boochun; Kim, Byungki; Lee, Woo-Jong; Yoo, Choong-Yuel - 2017
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 …