Company’s Sustainability and Accounting Conservatism: Firms Delisting from KOSDAQ

Accounting Conservatism and Real Options

I address the interaction between accounting conservatism and real options in both a staged investment and abandonment model. An accounting policy biased towards classifying a Good (Bad) project as Bad (Good) is conservative (aggressive). The accounting signal is optimally conservative when the ex ante unconditional expected terminal value is less than the second investment (staged investment) ...

Accounting Conservatism and the Efficient Provision of Capital to Privately Informed Firms

This study addresses conservatism in financial reporting. Firms seek financing for an investment. Investors have access to an imperfect accounting signal that may also have a conservative tendency. If the firms have no private information, conservatism is desirable only for negative ex ante expected value investments, consistent with the spirit of the results of Gigler et al (2009) and other st...

Manager Optimism Based on Environmental Uncertainty and Accounting Conservatism

It is expected that more accounting conservation (environmental uncertainty) reduces manager optimism. Prior research, however, has struggled to establish this relation empirically. Moreover, some evidence points to the possibility that the manager optimism is lower for firms with more accounting conservation. In this paper, the author examine the link between accounting conservation, environme...

Earnings Management and Delisting Risk: The Case of IPO Firms

Mandatory IFRS Adoption and Accounting Conservatism

Using a large sample of listed firms from 17 European countries that mandatorily adopted IFRS over the period 2005-2008, we examine the effect of mandatory IFRS adoption on accounting conservatism defined using Basu’s (1997) differential timeliness (DT) measure. An important distinction of our study is that we avoid the common criticisms of the DT measure by comparing the difference in the DT m...