It has long been established that because of accounting conservatism, the contemporaneous correlation between returns … the contemporaneous correlation between earnings and returns is lower. Hence, since accounting conservatism implies that … impact of accounting conservatism when awarding earnings-based compensation. In addition, the present work offers additional …

The purpose research is to examine other variables that also affect the relationship between conservatism and earnings … a representative sample. The results of this study indicate that the Instrumental Variables Conservatism has a … significant positive effect on the Earning Quality. This means that management positively signals the application of accounting …

a representative sample. An Alternative measure of accounting conservatism used is the instrumental variables of … Accounting conservatism (VIKV) developed by Lo (2005). The quality of earnings can be measured through discretionary accruals … the Earning Quality. This means that management positively signals the application of accounting conservatism within the …

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 …

While conditional conservatism is useful to investors and creditors for various reasons, it potentially reduces the … conditional conservatism reduces GAAP earnings persistence, makes income smoothing more difficult, reduces GAAP earnings … investor demands for earnings without some of the consequences of GAAP conditional conservatism and forecast Street earnings …