Download or read book Discussion of Conditional and Unconditional Conservatism written by Sudipta Basu and published by . This book was released on 2016 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Beaver and Ryan (Beaver, W. H., Ryan S. G. (2005). Review of Accounting Studies 10: (2/3)) algebraically model, simulate and graph the effects of various factors on the nonlinear earnings-return relation induced by conditional conservatism. Their analysis clarifies how conditional and unconditional conservatism are inter-related. I discuss why unconditional and conditional conservatism are more than mere substitutes, and provide evidence from the historical record. I then highlight a few areas for future modeling, before moving on to discuss potential empirical tests of their predicted relations. I identify some research questions and opportunities for future investigation.

Download or read book Conditional and Unconditional Conservatism written by Julia Nasev and published by Springer Science & Business Media. This book was released on 2009-12-28 with total page 129 pages. Available in PDF, EPUB and Kindle. Book excerpt: Julia Nasev examines the impact of conservative accounting numbers on valuation estimates and on real economic decisions such as cost stickiness.

Download or read book Conditional and Unconditional Conservatism Following a Financial Reporting Failure written by William Delton Lagore and published by ProQuest. This book was released on 2000 with total page 111 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book International Differences in Conditional Conservatism written by Joachim Gassen and published by . This book was released on 2006 with total page 53 pages. Available in PDF, EPUB and Kindle. Book excerpt: Prior research documents that conditional conservatism, measured as the asymmetric timeliness of earnings reflecting bad versus good news, varies with cross-country differences in institutional regimes. In this paper, we examine the determinants of conditional conservatism and related earnings attributes internationally. First, using panel data, we investigate whether competing earnings attributes such as unconditional conservatism and income smoothing affect conditional conservatism and its international differences. We find that these attributes are predictably correlated with conditional conservatism. Second, we address the question whether income smoothing and conditional conservatism are two fundamentally different earnings attributes. We show theoretically that both attributes yield different earnings distributions and that the motivations for producing earnings which possess these attributes differ. To test these predictions empirically, we calculate firm-specific time-series measures of asymmetric timeliness, using a novel trigonometric measure based on the standard Basu (1997)-type regression. Using this cross-sectional data, we test whether conditional conservatism and income smoothing are different and find them to be only weakly correlated for a broad international sample. Also, we demonstrate that income smoothing explains international differences in conditional conservatism. Finally, we estimate simple determinant models of conditional conservatism and income smoothing, showing that both earnings attributes are driven by different explanatory firm-level factors: conditional conservatism increases with the importance of debt financing, while income smoothing increases with the importance of dividends. Despite some important limitations, we believe our results to be meaningful because they show that cross-country differences in conditional conservatism are influenced by the effects of other accounting properties, predominantly income smoothing. Especially, legal regime appears to drive income smoothing while losing its explanatory power for conditional conservatism when firm-specific factors are controlled for.

Download or read book Management Through Accounts written by James Harris Bliss and published by . This book was released on 1924 with total page 880 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Capitalizing China written by Joseph P. H. Fan and published by University of Chicago Press. This book was released on 2013 with total page 401 pages. Available in PDF, EPUB and Kindle. Book excerpt: La 4e de couverture indique : "Despite a vast accumulation of private capital, China is not embracing capitalism. Deceptively familiar capitalist features disguise the profoundly unfamiliar foundations of "market socialism with Chinese characteristics." The Chinese Communist Party (CCP), by controlling the career advancement of all senior personnel in all regulatory agencies, all state-owned enterprises (SOEs), and virtually all major financial institutions state-owned enterprises (SOEs), and senior Party positions in all but the smallest non-SOE enterprises, retains sole possession of Lenin's Commanding Heights. The chapters in this volume examine China's high savings rate, banking system, financial markets, financial regulations, corporate governance, and public finances; and consider policy alternatives the CCP might consider if its goal is China's elevation into the ranks of high income countries."

Download or read book Conditional Conservatism in U S High and Low Technology Firms written by Mariem Khalifa and published by . This book was released on 2015 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this study, we investigate whether U.S. high-technology firms are more or less conditionally conservative relative to low-technology firms. If U.S. high-tech firms are required to expense immediately all R&D costs according to the accounting standard SFAS 2, which reflects unconditional conservatism, then in case of bad news (conditional conservatism), these firms cannot write-off their R&D costs. We expect that high-tech firms are less conditionally conservative since unconditional conservatism dampens the timeliness of accounting income. Our findings are consistent with the prediction that high-technology firms are less conditionally conservative than low-technology firms. The level of conditional conservatism increases with the level of leverage regardless of the technology level of the firm. Only low-technology firms are more conditionally conservative when they face higher auditor litigation risk. We find that neither in high-technology firms nor in low-technology firms, taxation affects conditional conservatism.

Download or read book Truth in Accounting written by Kenneth MacNeal and published by University of Pennsylvania Press. This book was released on 2016-11-11 with total page 352 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book is a volume in the Penn Press Anniversary Collection. To mark its 125th anniversary in 2015, the University of Pennsylvania Press rereleased more than 1,100 titles from Penn Press's distinguished backlist from 1899-1999 that had fallen out of print. Spanning an entire century, the Anniversary Collection offers peer-reviewed scholarship in a wide range of subject areas.

Download or read book Financial Statement Analysis and Security Valuation written by Stephen H. Penman and published by . This book was released on 2010 with total page 754 pages. Available in PDF, EPUB and Kindle. Book excerpt: Valuation is at the heart of investing. A considerable part of the information for valuation is in the financial statements.Financial Statement Analysis and Security Valuation, 5 e by Stephen Penman shows students how to extract information from financial statements and use that data to value firms. The 5th edition shows how to handle the accounting in financial statements and use the financial statements as a lens to view a business and assess the value it generates.

Download or read book Equity Valuation written by Peter O. Christensen and published by Now Publishers Inc. This book was released on 2009 with total page 127 pages. Available in PDF, EPUB and Kindle. Book excerpt: We review and critically examine the standard approach to equity valuation using a constant risk-adjusted cost of capital, and we develop a new valuation approach discounting risk-adjusted fundamentals, such as expected free cash flows and residual operating income, using nominal zero-coupon interest rates. We show that standard estimates of the cost of capital, based on historical stock returns, are likely to be a significantly biased measure of the firm's cost of capital, but also that the bias is almost impossible to quantify empirically. The new approach recognizes that, in practice, interest rates, expected equity returns, and inflation rates are all stochastic. We explicitly characterize the risk-adjustments to the fundamentals in an equilibrium setting. We show how the term structure of risk-adjustments depends on both the time-series properties of the free cash flows and the accounting policy. Growth, persistence, and mean reversion of residual operating income created by competition in the product markets or by the accounting policy are key determinants of the term structure of risk-adjustments.

Download or read book Depreciation written by Earl Adolphus Saliers and published by . This book was released on 1915 with total page 212 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Accrual Reversal Effect and Conditional Conservatism written by Jumpei Nishitani and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the relationship between two salient features embedded in the modern financial accounting information system: accrual reversal and accounting conservatism. This relationship is analyzed using a moral hazard model in a single-period setting and two types of two-period models: pooling and separating. When the effect of accrual reversal is considered in the long term, accounting conservatism as an information bias was found to be an optimal choice for the principal in a two-separating-period setting, particularly when business risk is high and/or the informativeness of the accounting information system is low; however, accounting conservatism could never be used as an information bias under a single-period or two-pooling-period settings, even with limited liability conditions. These findings indicate that accrual reversal could be considered a driving force for conditional accounting conservatism, but not for unconditional conservatism. Moreover, accrual reversal may provide an explanation for the seemingly contradictory behavior of accounting standard-setting bodies that introduced conditional conservatism, although expressing negative attitudes toward accounting conservatism.

Download or read book Theory of the Measurement of Enterprise Income written by Robert R. Sterling and published by Lawrence : University Press of Kansas. This book was released on 1970 with total page 408 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Courage and Consequence written by Karl Rove and published by Simon and Schuster. This book was released on 2010-04-03 with total page 626 pages. Available in PDF, EPUB and Kindle. Book excerpt: From the moment he set foot on it, Karl Rove has rocked America’s political stage. He ran the national College Republicans at twenty-two, and turned a Texas dominated by Democrats into a bastion for Republicans. He launched George W. Bush to national renown by unseating a popular Democratic governor, and then orchestrated a GOP White House win at a time when voters had little reason to throw out the incumbent party. For engineering victory after unlikely victory, Rove became known as “the Architect.” Because of his success, Rove has been attacked his entire career, accused of everything from campaign chicanery to ideological divisiveness. In this frank memoir, Rove responds to critics, passionately articulates his political philosophy, and defends the choices he made on the campaign trail and in the White House. He addresses controversies head-on— from his role in the contest between Bush and Senator John McCain in South Carolina to the charges that Bush misled the nation on Iraq. In the course of putting the record straight, Rove takes on Democratic leaders who acted cynically or deviously behind closed doors, and even Republicans who lacked backbone at crucial moments. Courage and Consequence is also the first intimate account from the highest level at the White House of one of the most headline-making presidencies of the modern age. Rove takes readers behind the scenes of the bitterly contested 2000 presidential contest, of tense moments aboard Air Force One on 9/11, of the decision to go to war in Afghanistan and Iraq, of the hard-won 2004 reelection fight, and even of his painful three years fending off an indictment by Special Prosecutor Patrick Fitzgerald. In the process, he spells out what it takes to win elections and how to govern successfully once a candidate has won. Rove is candid about his mistakes in the West Wing and in his campaigns, and talks frankly about the heartbreak of his early family years. But Courage and Consequence is ultimately about the joy of a life committed to the conservative cause, a life spent in political combat and service to country, no matter the costs.

Download or read book Earnings Quality written by Jennifer Francis and published by Now Publishers Inc. This book was released on 2008 with total page 97 pages. Available in PDF, EPUB and Kindle. Book excerpt: This review lays out a research perspective on earnings quality. We provide an overview of alternative definitions and measures of earnings quality and a discussion of research design choices encountered in earnings quality research. Throughout, we focus on a capital markets setting, as opposed, for example, to a contracting or stewardship setting. Our reason for this choice stems from the view that the capital market uses of accounting information are fundamental, in the sense of providing a basis for other uses, such as stewardship. Because resource allocations are ex ante decisions while contracting/stewardship assessments are ex post evaluations of outcomes, evidence on whether, how and to what degree earnings quality influences capital market resource allocation decisions is fundamental to understanding why and how accounting matters to investors and others, including those charged with stewardship responsibilities. Demonstrating a link between earnings quality and, for example, the costs of equity and debt capital implies a basic economic role in capital allocation decisions for accounting information; this role has only recently been documented in the accounting literature. We focus on how the precision of financial information in capturing one or more underlying valuation-relevant constructs affects the assessment and use of that information by capital market participants. We emphasize that the choice of constructs to be measured is typically contextual. Our main focus is on the precision of earnings, which we view as a summary indicator of the overall quality of financial reporting. Our intent in discussing research that evaluates the capital market effects of earnings quality is both to stimulate further research in this area and to encourage research on related topics, including, for example, the role of earnings quality in contracting and stewardship.

Download or read book Conservative Internationalism written by Henry R. Nau and published by Princeton University Press. This book was released on 2013-09-15 with total page 338 pages. Available in PDF, EPUB and Kindle. Book excerpt: Debates about U.S. foreign policy have revolved around three main traditions--liberal internationalism, realism, and nationalism. In this book, distinguished political scientist Henry Nau delves deeply into a fourth, overlooked foreign policy tradition that he calls "conservative internationalism." This approach spreads freedom, like liberal internationalism; arms diplomacy, like realism; and preserves national sovereignty, like nationalism. It targets a world of limited government or independent "sister republics," not a world of great power concerts or centralized international institutions. Nau explores conservative internationalism in the foreign policies of Thomas Jefferson, James Polk, Harry Truman, and Ronald Reagan. These presidents did more than any others to expand the arc of freedom using a deft combination of force, diplomacy, and compromise. Since Reagan, presidents have swung back and forth among the main traditions, overreaching under Bush and now retrenching under Obama. Nau demonstrates that conservative internationalism offers an alternative way. It pursues freedom but not everywhere, prioritizing situations that border on existing free countries--Turkey, for example, rather than Iraq. It uses lesser force early to influence negotiations rather than greater force later after negotiations fail. And it reaches timely compromises to cash in military leverage and sustain public support. A groundbreaking revival of a neglected foreign policy tradition, Conservative Internationalism shows how the United States can effectively sustain global leadership while respecting the constraints of public will and material resources.

Download or read book The National System of Political Economy written by Friedrich List and published by . This book was released on 1904 with total page 422 pages. Available in PDF, EPUB and Kindle. Book excerpt: