A principal-agent relationship exists among creditors, shareholders and management, and information asymmetry among them leads to asymmetric loss functions, which induces conservative accounting. This paper investigates the determinants of accounting conservatism using accrual-based measures and data from 2001 to 2006 in China. We find that a higher degree of leverage, lower level of control of...

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...

In this article, we analyzed whether the level of accounting conservatism a firm is affected by its environmental sustainability information disclosure. For that purpose, developed two Environmental Disclosure Indices (EDI), one obtained from mandatory reporting (annual report) and other voluntary (sustainability report), compared effects on conditional conservatism. Content analysis was used t...

0