... GDP growth over a ten-quarter horizon. 1 6 2018 1 1 2021 2022 aggregate earnings aggregate special items GDP growth asymmetric timeliness rational expectations news-driven business cycles Recent macro-accounting research investigating the information content...

...Sunil Dutta; Panos N. Patatoukas ABSTRACT Using a financial reporting and valuation model, we investigate the construct validity of Basu's (1997) asymmetric timeliness (AT) regression coefficient as a measure of conditional conservatism in corporate financial reporting. We predict...

... on lagged share price mimics time-series and cross-sectional variation observed for the revised measures. More generally, we find biases in the asymmetric timeliness specification because earnings, accruals, and other measures of performance are often related to second and higher moments of the distribution...

..., biasing asymmetric timeliness estimates. When firm-specific effects are taken into account, estimates do not exhibit the bias, are statistically and economically significant, are consistent with priors, and behave as a predictable function of book-to-market, size, and leverage. Data Availability...