In recent years, accounting regulation has been internationalized with the extensive use and adoption of International Financial Reporting Standards (IFRS) by nation-states, which points at least to a formal convergence between accounting regulatory systems. However, major differences between national accounting systems persist. In this paper, it is argued that a country’s accounting system is ...

Information asymmetry among stakeholders is the cause of accounting conservatism, since it leads to the asymmetric loss function which brings in the required mechanism to protect the interest of parties with information disadvantage; Agency theory suggests that stakeholders need conservative accounting reports since conservatism will be reciprocal beneficial for all parties and management incen...

information asymmetry is a negative event that gives manager incentives to use his private information to attempt transferring wealth from investors by overstating financial performance and consequently, stock prices during his tenure at the firm. the manipulations generate agency costs. conservative reporting is a mechanism that reduces the managers’ ability to manipulate and overstate financi...

Purpose – This study examines whether high analyst coverage increases or decreases accounting conservatism. Design/methodology/approach – This study selects sample firms from the Compustat and I/B/E/S databases for years 1989-2006. We use both accrual-based and marketvalue-based measures of accounting conservatism. We also use the extent to which negative cash flow from operations is more timel...

This paper examines the effect of accounting restatements on a firm’s cost of equity capital. We show that, on average, accounting restatements lead to both decreases in expected future earnings and increases in the firm’s cost of equity capital. Depending on the model used, relative percentage increases in the cost of equity capital average between 7 and 19% in the month immediately following ...

We provide evidence on the characteristics of local generally accepted accounting principles (GAAP) earnings for firms cross-listing on U.S. exchanges relative to a matched sample of foreign firms currently not cross-listing in the United States to investigate whether U.S. listing is associated with differences in accounting data reported in local markets. We find that cross-listed firms differ...

Prior studies have portrayed accounting conservatism as a tool that enables boards to perform their monitoring duties. We develop a model that suggests that the empirical association between conservatism and governance can also run in the opposite direction —only well-governed firms with suffi cient monitoring in place can fully utilize the benefits of conservative accounting. In our setting, c...

The Vuolteenaho (2002) return decomposition is linear because it assumes that the market’s return expectations are obtained solely from accounting information. By restricting accounting recognition rules to specific (and primarily) negative future cash flow shocks, conservative accounting drives a wedge between the market’s return expectations that are based upon all positive and negative cash ...

OBJECTIVES To review the causes and management of penile fracture and to compare between surgical and conservative management as well as immediate and delayed interventions in terms of overall and specific complications. METHODS A search of all reported literature was conducted for all articles reporting on the management and outcomes of penile fractures. Full texts of relevant articles were ...