2011
DOI: 10.5539/ijbm.v6n10p94
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Accounting Conservatism and Disposition Effect

Abstract: The current financial crisis which began in 2008 created economic disruption on a global level. This study investigates the effect of accounting conservatism on the disposition effect in the Chinese capital markets. Our research findings show accounting conservatism offsets "overestimation "and "underestimation" resulting from the disposition effect. From an accounting perspective, we find the governance role of conservatism may correct inaccurate market pricings; we believe this research provides knowledge th… Show more

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Cited by 3 publications
(1 citation statement)
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References 14 publications
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“…In contrast, the team members with low-level openness lean to be conventional and conservative in their opinions and behaviors (Costa and McCrae, 2008). Their conventional and conservative opinions might be counteractive opinions for the new ideas proposed by the team members with high-level openness (Zhao et al, 2011), contributing to overcoming the weaknesses of these new ideas and further benefit successful idea promotion and implementation. Thus, if a team of high group openness diversity, the team members with high-level openness and the team members with low-level openness can mutually support to IJCHM 34,2…”
Section: Hypothesis Development 21 Group Diversitymentioning
confidence: 99%
“…In contrast, the team members with low-level openness lean to be conventional and conservative in their opinions and behaviors (Costa and McCrae, 2008). Their conventional and conservative opinions might be counteractive opinions for the new ideas proposed by the team members with high-level openness (Zhao et al, 2011), contributing to overcoming the weaknesses of these new ideas and further benefit successful idea promotion and implementation. Thus, if a team of high group openness diversity, the team members with high-level openness and the team members with low-level openness can mutually support to IJCHM 34,2…”
Section: Hypothesis Development 21 Group Diversitymentioning
confidence: 99%