In this paper, we empirically evaluate two views on the relation between product market competition and conditional accounting conservatism. One view is that intense product market competition increases bankruptcy risk and consequently, exacerbates shareholder-bondholder conflict of interest and enhances the likelihood of litigation. In response, both bondholders and auditors demand a higher le...

We predict and find that accounting restatements induce economically meaningful share price declines among non-restatement firms in the same industry. These price declines are most pronounced among non-restatement firms with low accounting quality, as measured by industry adjusted accruals. Our results are consistent with the notion that accounting restatements cause investors to reassess the c...

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...

Recent highly publicized ethical breaches including those at Enron and WorldCom have focused attention on ethical behavior within the accounting profession. At the heart of the debate is whether ethical attitudes of accountants are to blame. Using a nationally representative sample of accounting practitioners and a multidisciplinary student sample at two Southern United States universities, we ...

The major functions of company accounting identified by the IASB and the FASB are (1) reporting on ‘the custody and safekeeping’ of the company’s resources and (2) reporting on ‘their efficient and profitable use’. The joint IASB/FASB project for improving the conceptual framework for financial reporting is directed towards better performance of both functions within the conventional ‘accrual’ ...

The article is devoted to the study of essence behavioral theory and its relationship with accounting as a system. Behavioral studies explains human behavior through incentives punishments today this interdisciplinary, because it allows you predict during management decisions in process economic activity. science component psychology, which analyzes people using systematic approach, that is, ob...