In this paper, we offer a new theory for the economic demand of accounting conservatism, which emphasizes the signaling … role of conservatism in a debt market with asymmetric information. In our model, accounting conservatism serves as a signal … analytically derive four basic properties of accounting conservatism, based on Basu's (1997) asymmetric timeliness of earnings …

This paper studies the effect of financial constraints and financial distress on accounting restatements; specifically … the interest coverage ratio-influence the likelihood of an accounting restatement. To do so, we use a sample of Spanish … associated with a higher incidence of accounting restatements. Our evidence is consistent with the argument that financially …

We examine whether attribution bias that leads managers who have experienced short-term forecasting success to become … overconfidence, managers who have predicted earnings accurately in the previous four quarters are less accurate in their subsequent … earnings predictions. These managers also display greater divergence from the analyst consensus and are more precise. Lastly …

In seeking to replace accounting conventions by concepts in the pursuit of principles-based standards, the FASB … welcome the use of theories by accounting standard setters and practitioners, if theories are considered in their entirety … and standards. Our conclusions about how accounting concepts and conventions should be related differ from those of the …