...Xin Chang; Shanmin Li; Chun Liu; Liang Sun; Wenrui Zhang ABSTRACT We document that firms in more politically corrupt regions of China adopt more conservative accounting. The relation between local political corruption and accounting conservatism weakens after China’s anticorruption campaign...

... Department, Brighton, United Kingdom. Editor’s note: Accepted by Teri Lombardi Yohn, under the Senior Editorship of W. Robert Knechel. 14 05 2022 11 06 2024 17 06 2024 2024 current expected credit loss model accounting conservatism bank regulation debt governance...

... policies alter the relative risk faced by investors when they short versus long, which causes market liquidity to differ for positive versus negative demand shocks. As a result, accounting conservatism raises firms’ valuations and lowers their expected returns. We further demonstrate that the relationship...

...Jonathan C. Glover; Haijin H. Lin ABSTRACT We study intertemporal incentive properties of conditional accounting conservatism. Conservatism has detrimental and beneficial properties. In our first model, conservatism introduces downward bias in the first period; any understatement of first-period...

...' creditworthiness; this potentially reduces supply-chain lenders' reliance on accounting conservatism in debt contracting. Consistently, we find that suppliers borrowing from supply-chain lenders provide less conservative financial statements than suppliers borrowing from non-supply-chain lenders at loan...

...Charles Hsu; Kirill E. Novoselov; Rencheng Wang ABSTRACT Overconfident CEOs are more willing to initiate investment projects that require experimentation, yet tend to defer responding to the bad news when the project is not performing as planned. Accounting conservatism accelerates the recognition...

...John Donovan; Richard M. Frankel; Xiumin Martin ABSTRACT We examine the relation between accounting conservatism and creditor recovery rates for firms in default. We also test the link between conservatism and the length of bankruptcy resolutions. We find that creditors of firms with more...

...Michael J. Crawley ABSTRACT This study investigates the macroeconomic consequences of firm-level accounting conservatism. Consistent with conditional conservatism extending to the aggregate level, I demonstrate that annual estimates of aggregate corporate profits and gross domestic product...

...Kiridaran Kanagaretnam; Chee Yeow Lim; Gerald J. Lobo ABSTRACT Using an international sample of banks and country-level indices for individualism and uncertainty avoidance as proxies for national culture, we study how differences in culture across countries affect accounting conservatism and bank...

... accounting conservatism value/glamour stocks skewness book-to-market ratio growth I thank Malachy English, John Harry Evans III (senior editor), Clifton Green, Sanjay G. Kallapur (editor), Charles Lee, James Ohlson, James Ryans, two anonymous reviewers...

... on Accounting and Economics, Northwestern University, Stanford University, and the AAA FARS 2009 Conference for their comments. Editor's note: Accepted by Paul Newman. May 2010 June 2011 2012 debt covenants fair value accounting conservatism...