...Devendra Kale; Sriram V. Villupuram SYNOPSIS Conservatism captures an asymmetric reporting practice in response to uncertainty in business operations (earnings). Such uncertainty in business operations implies that investors are exposed to tail risk such that there is a probability of large...

..., and corporate governance. Our historical accounts suggest that the approach to accounting and financial reporting is more consistent with stewardship (care of net assets) than an attempt to value the firm, and that conservatism (prudence) is a critical information control and governance mechanism. We echo...