Download or read book Essays on Determinants of Accounting Conservatism written by Feida Zhang and published by . This book was released on 2009 with total page 258 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on Determinants of Accounting Conservatism written by Feida Zhang and published by LAP Lambert Academic Publishing. This book was released on 2012-02 with total page 140 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study consists of two essays. Using a dataset from 38 economies, the first essay examines the association between product market competition and accounting conservatism as well as whether this association varies with legal institutions and product market competition. In addition, I also investigate whether product market competition affects the positive association between legal institutions and accounting conservatism documented by prior studies. In the second essay, I examine the association between ownership structure and accounting conservatism as well as how legal institutions influence this association. Using a comprehensive, firm-level ownership dataset for thirteen Western European countries to conduct the empirical analysis, I find that: (1) both wedge between control rights and cash-flow rights and dispersion of cash-flow rights across multiple large owners are positively associated with accounting conservatism; (2) legal institutions strengthen the positive association between wedge/dispersion of cash-flow rights and accounting conservatism.

Download or read book Three Essays on Determinants of Accounting Choice written by and published by . This book was released on 2014 with total page 129 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on the Determinants and Effects of Financial Reporting Quality written by Ting Luo and published by . This book was released on 2007 with total page 140 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Three Essays on Properties Determinants and Consequences of Accounting Standards written by Timo Eisenschink and published by . This book was released on 2014 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays in accounting and finance written by Ahmed Mamdouh Tahoun and published by . This book was released on 2011 with total page 166 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on Accounting Conservatism written by Bong Hwan Kim and published by . This book was released on 2010 with total page 157 pages. Available in PDF, EPUB and Kindle. Book excerpt: I examine the role of accounting conservatism in the debt market and equity market. In the first essay I examine whether post-borrowing accounting conservatism is related to initial debt-covenant slack. I find firms with low debt-covenant slack display a smaller increase in conservatism after borrowing compared to firms with high debt-covenant slack. I further find that this relation is more pronounced when the cost of debt-covenant breach is greater and is less pronounced when lenders have stronger monitoring incentives. This study supports the debt covenant hypothesis. The second essay investigates the impact of financial market competition on a firm's choice regarding accounting quality (co-authored). The estimates indicate that foreign bank entry is associated with improved accounting quality among firms, and this improvement is positively related to a firm's subsequent debt level. The increase in accounting quality is also greatest among private firms, smaller firms, less profitable firms, and firms more dependent on external financing. The third essay investigates whether conditional accounting conservatism has informational benefits to shareholders (co-authored). We find some evidence that higher current conditional conservatism is associated with lower probability of future bad news. We also find weak evidence that the stock market reacts stronger (weaker) to good (bad) earnings news of more conditionally conservative firms. Thus, we provide additional evidence that conditional conservatism affects stock prices.

Download or read book Essays on Corporate Governance and Accounting Conservatism written by Ian Drummond Gow and published by . This book was released on 2009 with total page 280 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Conditional Conservatism in Accounting written by Giorgio Gotti and published by . This book was released on 2008 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: Following Basu's (1995, 1997) seminal work, accounting literature adopted the Basu coefficient to measure conditional conservatism (among others, Ball et al. 2003; Ball et al. 2000; Ball et al. 2005; Ball and Shivakumar 2005; Lobo and Zhou 2006; Chandra et al. 2004). However, Basu's choice of proxy for measuring the arrival of good/bad news, stock returns, introduces inaccuracy in the measure of conditional conservatism (Dietrich et al. 2007; Roychowdhury and Watts 2007; Givoly et al. 2007). To address the problem, I introduce a new measure of conditional conservatism, which results from a Least Absolute Deviation (LAD) piecewise regression and adopts the number of changes in financial analysts' EPS forecasts as a proxy for good/bad news about future earnings and extends the analysis to two-year and three-year time horizons. I use this new measure to test three determinants that prior literature suggested to explain the presence of accounting conservatism. Results show that companies with high debt-to-assets ratio - closer to default on their debt covenants, with large portion of executives' compensation tied to the firm's performance, and in the year prior to a going concern opinion from their auditors report aggressively, recognizing future good news in annual earnings more quickly than bad news.

Download or read book Accounting Theory written by Harvey Hendrickson and published by Routledge. This book was released on 2004-06-10 with total page 145 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book collects together eight previously unpublished essays writen by Carl Thomas Devine, one of the outstanding accounting theoreticians of the twentieth century.

Download or read book Determinants and Economic Consequences of Discretionary Accounting Conservatism written by Yen H. Tong and published by . This book was released on 2005 with total page 210 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on Accounting Conservatism written by and published by . This book was released on 2004 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: PolyU Library Call No.: [THS] LG51 .H577P AF 2004 Jia.

Download or read book Essays on Accounting Conservatism written by Yinping Jia and published by . This book was released on 2004 with total page 252 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Accounting Conservatism and the Stock Market written by Carlo D’Augusta and published by Springer Nature. This book was released on with total page 89 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Impact of Community Social Capital and Trust on Levels of Accounting Conservatism written by Michelle Li-Kuehne and published by . This book was released on 2021 with total page 132 pages. Available in PDF, EPUB and Kindle. Book excerpt: Accounting conservatism reflects the judgment and potential bias allowed per accrual-based accounting by choosing to disclose bad news ahead of holding a higher bar for reporting good news. Financial reporting aggressiveness has been a strong focus of current research; I argue that examining accounting conservatism, representing the other side of the financial reporting quality spectrum, is equally important. Most research has focused on the consequences of accounting conservatism, in contrast to my study, which examines potential antecedents. Essay 1 of my dissertation illuminates the relationship between community social capital and accounting conservatism. Community social capital is proxied by the social norms and networks of the firm's headquarter location and is collected on a county basis. The reputational pressures of social norms may restrain managerial rent-seeking behaviors, thereby resulting in increased accounting conservatism. Social networks facilitate information exchange, thus reducing information asymmetry and possibly reducing the need for accounting conservatism. Hence, the effect of community social capital on accounting conservatism, including the potentially opposing influence of social norms and networks, creates an empirical question and motivates my study. My research extends literature concerning various firm-specific factors associated with accounting conservatism by uniquely examining the influence of the qualitative characteristics of social capital. The results of my study indicate high community social capital is associated with lower levels of conditional accounting conservatism, implying the contracting benefits of high community social capital negate the additional contracting benefits of conditional accounting conservatism. Essay 2 of my dissertation studies the intangible trait of corporate trust and the associated choices about using accounting conservatism. Trust is the reliability and honesty of a relationship. My study measured trust by developing a comprehensive dictionary of trust-related words and phrases via natural language processing known as machine learning. I examined a large sample of firm-year text data from the Q and A section of earnings calls. Corporate demonstration of trust may act as a potential substitute for accounting conservatism, for example, in the context of contracting theory. In contrast, trust may complement corporate accounting conservatism strategies, such as being part of the overall corporate culture and risk aversion theory. Motivated by this potential dichotomy, my study explores the relationship between trust and accounting conservatism. My results indicate higher levels of firm trust are associated with lower levels of accounting conservatism, which supports the tendency of trust to act as a substitute for accounting conservatism leanings. My study adds weight to prior research by examining trust and further delineating its relationship with conditional and unconditional accounting conservatism. My study complements and extends text analysis research. To my knowledge, it is the first study to develop a corporate tone of trust dictionary via machine learning to examine its relationship with accounting conservatism.

Download or read book ESSAYS ON LOSS RESERVING AND ACCOUNTING CONSERVATISM written by Juan Zhang and published by . This book was released on 2020 with total page 147 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation has three chapters studying accounting conservatism in the property-liability (P&L) insurance industry. There are two types of accounting conservatism - ex-ante (unconditional) conservatism and ex-post (conditional) conservatism. The former means that firms over-report liabilities initially, before more detailed information becomes available. The latter means that firms respond to this new information asymmetrically by recognizing expected losses more quickly than expected gains. My analysis throughout the dissertation focuses on the loss reserve accruals since it is the most significant accruals on the balance sheet. One benefit of studying the P&L insurance industry is that we have specific and detailed information regarding the development of loss reserve accruals over time. Chapter 1 is an executive summary of the next two chapters, highlighting the key results, the policy implications, and the contributions of the dissertation. Chapter 2 studies the two types of accounting conservatism and explore three research questions: (1) whether ex-ante and ex-post conservatism prevails in the P&L insurance industry; (2) what the relations are between ex-post conservatism and other managerial incentives including ex-ante conservatism; and (3) how much the opportunity cost is for being conservative. I study all U.S. domiciled P&L insurance companies from 1996 to 2012 and follow the previous literature to measure accounting conservatism in Chapter 2. I find that both types of accounting conservatism prevail in the insurance industry. Besides, the back-of-the-envelope estimates based on the industry average insurer indicate that their opportunity costs are trivial compared to the amounts of net income and total assets. Chapter 2 also shows that the practices of ex-ante and ex-post conservatism exhibit a nonlinear, U-shape relationship. This finding supports the view that the two types of conservatism can be compliments because they can serve for different purposes. Ex-ante conservatism is mainly used to create a cushion against future unexpected losses, whereas ex-post conservatism can reduce informational frictions. In Chapter 3, I develop a new method of assessing conditional conservatism using more detailed data from the insurance industry. I look at how conditional conservatism affects insolvency risk and the financial strength rating of P&L insurance companies. I also investigate how a change to accounting rules affects conditional conservatism. The new method of measuring conditional conservatism is based on the concavity of the loss development curve. I study all U.S. domiciled P&L insurance companies from 1995 to 2015 and find that the greater the degree of conditional conservatism, the lower is insolvency probability, and the better is the financial strength rating, with other things being constant. The result indicates that regulators and rating agencies do reward insurers that voluntarily utilize conditional conservatism accounting strategy. Moreover, I find that the level of conditional conservatism is reduced after the enactment of the Model Audit Rule (MAR). MAR, like the Sarbanes-Oxley Act Section 404, increased board oversight of internal risk management. The result suggests that complying with additional disclosure requirements provides a "safe harbor" for insurance companies so that they have fewer incentives to be conditionally conservative.

Download or read book Dissertation Abstracts International written by and published by . This book was released on 2009 with total page 668 pages. Available in PDF, EPUB and Kindle. Book excerpt: