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 Essays on Accounting Conservatism written by Bong Hwan Kim and published by . This book was released on 2000 with total page 166 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 Essays on Equity Valuation and Accounting Conservatism for Insurance Companies written by Ahmad Haboub and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

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 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 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 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 Twenty five Years of Accounting Responsibility 1911 1936 written by George Oliver May and published by . This book was released on 1936 with total page 824 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Accounting and Debt Markets written by Mark Clatworthy and published by Routledge. This book was released on 2021-05-13 with total page 196 pages. Available in PDF, EPUB and Kindle. Book excerpt: Accounting and Debt Markets: Four Pieces on the Role of Accounting Information in Debt Markets provides novel and up-to-date evidence on the role of accounting information in debt markets Companies and organisations worldwide rely heavily on debt markets for short, medium and long-term financing, and debt markets and financial intermediaries have significant effects on the real economy. Accounting information has various functions in debt markets, including inter alia, informing pricing decisions and credit ratings, determining the allocation of creditor control rights and establishing bank capital adequacy requirements. The chapters in this book provide illustrative discussion, analysis and evidence on the importance of accounting information in credit markets. The first of the four pieces reflects on how a conservative financial reporting system helps firms obtain debt funds and with better conditions, and why this is the case. The second examines the effects of accounting disclosure on credit ratings of private companies and shows that accounting information is useful for credit rating agencies. The two final pieces reflect on how banks should account for credit losses, and on how regulators are tackling this issue. The chapters in this book were originally published as a special issue of Accounting and Business Research.

Download or read book Papers on Accounting History RLE Accounting written by Robert Parker and published by Routledge. This book was released on 2013-12-04 with total page 197 pages. Available in PDF, EPUB and Kindle. Book excerpt: Written over a period of twenty years the papers included here reflect the changing circumstances around the study of accounting history.

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 Significant Accounting Essays written by Maurice Moonitz and published by . This book was released on 1965 with total page 552 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Papers and Proceedings of the Annual Meeting written by American Association of University Instructors in Accounting. Meeting and published by . This book was released on 1922 with total page 234 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Papers and Proceedings of the Annual Meeting written by American Accounting Association and published by . This book was released on 1922 with total page 270 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Papers on Accounting Principles and Procedure written by American Institute of Accountants and published by . This book was released on 1939 with total page 276 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Papers and Proceedings of the American Association of University Instructors in Accounting written by American Association of University Instructors in Accounting and published by . This book was released on 1980 with total page 536 pages. Available in PDF, EPUB and Kindle. Book excerpt: