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 to subsequent decreases in information asymmetries between firm …

conservatism can reduce firms’ expected legal costs. Because managers with legal expertise are more likely than other managers to … recognize the legal benefits of conservatism, this study examines whether legal expertise among members of senior management … promotes greater conservatism. Consistent with this prediction, we find that firms with a general counsel (GC) in senior …

This paper investigates the association between investor sentiment and accounting conservatism. We find that managers … recognize economic losses in earnings in a more timely manner during periods of high investor sentiment. Further, the sentiment-conservatism … relation is stronger for firms with greater sentiment-price sensitivity. We also find that the sentiment-conservatism …

important characteristic of financial reporting, accounting conservatism. Prior literature suggests that religious individuals … are more risk-averse and have higher ethical standards, while accounting conservatism has been shown to reduce various … headquartered in countries with higher levels of religiosity exhibit, on average, higher accounting conservatism in financial …

By focusing on the more pervasive unconditional conservatism, we provide fresh insights on how conservatism can be … to the debate about conservatism reducing reporting quality. Our findings identify opportunistic behaviour and real costs …

reporting quality. Therefore, we consider auditor conservatism as a strategy towards uncertainty, which might arise in highly … audited accounting signals, auditor conservatism introduces a downward bias into the published reports as the auditor requires …

hypothesis that first-digit deviations are positively related to earnings management and conditional conservatism. A possible … explanation is that earnings management and some mechanisms through which conditional conservatism occurs introduce biases to …

conservatism affects accounting quality. We provide evidence that CFOs significantly influence accounting conservatism at firm … of the economic consequences of restatements, firm-level accounting conservatism, the use of different proxies for … accounting quality, and CFO conservatism. Also, our results are unaffected by the enactment of the Sarbanes–Oxley Act (SOX) …

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 … accounting conservatism and the use of collateral are negatively related, after controlling for firm performance and risk. The …