...Zhuo Cheng (June); Jing Fang (Bob); Linda A. Myers ABSTRACT The larger association between earnings and contemporaneous returns for negative returns than for positive returns is often attributed to conditional conservatism. We reason that this asymmetry may also be driven by the lack of timeliness...

... entrants and actual bank entry. We find that borrowers’ conditional conservatism fell after IBBEA. Conservatism fell more for firms located in states with weak incumbent banks and states with more out-of-state entrants, especially entrants with better monitoring technologies. The decrease in conservatism...

... is consistent with resolution of valuation uncertainty. However, we do not find clear evidence of more net stock purchases during this period by insiders of firms with greater asymmetric timeliness. JEL Classifications: M41; G14. 10 2014 8 2019 2020 conditional conservatism earnings...

...Jonathan Black; Jeff Zeyun Chen; Marc Cussatt ABSTRACT Investors demand conditional conservatism to restrict managers' ability to opportunistically exploit unverifiable accounting estimates. The fair value estimation process is subject to verifiability concerns when market prices are unavailable...

...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...

... a measure of conditional conservatism, referred to as differential or asymmetric timeliness (AT). It is the slope from a regression of earnings on returns estimated for bad news minus the corresponding good news slope. To clarify terminology, these slopes describe the timeliness with which earnings...

...Ray Ball; S. P. Kothari; Valeri V. Nikolaev ABSTRACT The concept of conditional conservatism (asymmetric earnings timeliness) has provided new insight into financial reporting and stimulated considerable research since Basu (1997 ). Patatoukas and Thomas (2011 ) report bias in firm-level cross...