there is an inconsistency in empirical and analytical results regarding the role of conservatism (beneficial or not) in the … also improve debt efficiency. My analytical show that there is a higher level of conservatism, when the long-term debt … contracts include balance-sheet rather than income-statement debt covenants. Moreover, a higher level of conservatism is …

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 … risks to the firm (e.g., bankruptcy, stock price crashes.) at the expense of higher reported earnings. We find that managers …

This paper examines the role of conservatism when an agent can manipulate upcoming earnings before all uncertainty is … resolved. An increase in conservatism, by reducing the likelihood of favorable earnings, requires steeper performance pay to … inducing effort and curbing manipulation predict an interior level of conservatism as optimal. The optimal level of …

It is argued in the literature that accounting conservatism may be used as a substitute for management earnings … that accounting conservatism serves as a substitute for informative MEFs and especially for pessimistic MEFs, but not for … opportunistic and optimistic forecasts. Accounting conservatism may, however, be used as supplementary to optimistic MEFs …