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...

We study the intertemporal properties of conservatism with a focus on managerial incentives. In our main model, conservatism results in smaller expected payouts to the manager (agent) in early periods and larger expected payouts in later periods. Conservatism shifts (ambiguous) evidence that might be used to recognize good performance in early periods to later periods. In later periods, good pe...

This essay argues against the view—frequently put forward by conservatives themselves—that conservatism cannot be analyzed as a coherent political ideology. It then proposes a multidimensional approach to understanding conservatism, defining (and defending a particular interpretation of) four dimensions which are termed sociological, methodological, dispositional and philosophical. It is argued...

Phylogenetic niche conservatism is the pattern where close relatives occupy similar niches, whereas distant relatives are more dissimilar. We suggest that niche conservatism will vary across clades in relation to their characteristics. Specifically, we investigate how conservatism of environmental niches varies among mammals according to their latitude, range size, body size and specialization....

1Division of Accounting, School of Business, NanyangBusiness School, Nanyang Technological University, Singapore 2Leventhal School of Accounting,Marshall School of Business, University of SouthernCalifornia, USA Correspondence Clive Lennox, Leventhal School ofAccounting, Marshall School ofBusiness,University of SouthernCalifornia, 3670TrousdaleParkway, Los Angeles,CA90089,USA. Email: clennox@us...

This study evaluated the relationship between market-to-book ratio and Tobin’s Q and accounting conservatism. An important factor in adopting conservative approaches is the increased competitive pressures. Nevertheless, conservative approach reduces expectations of future performance of the businesses. This study used the data from companies listed in TSE during 2008 to 2013. Basu’s model was u...

this paper examines the effect of systematic risk on accounting conservatism. the idea is that in firms with higher systematic risk, managers have higher incentives to delay the recognition of bad news in the hope of future good news. they also face less demand for conservatism from investors and auditors. in this paper, for measuring systematic risk and accounting conservatism, we used beta fr...