Conservatism measures that control for the effects of economic rents on stock returns

Caskey, Judson; Peterson, Kyle

doi:10.1007/s11156-013-0360-1

Cited by 7 publications

(2 citation statements)

References 37 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…We run regression (1) for each year in the sample. 3 Although some studies claim that Basu's model is biased (Caskey and Peterson 2014;Dietrich et al 2007;Givoly et al 2007;Pae et al 2005;Roychowdhury and Watts 2007), there is emerging and robust evidence that Basu's coefficient is a valid measure for accounting conservatism. Ball et al (2013b) provide formal tests in different settings and conclude that Basu's coefficient is valid.…”

Section: Measure Of Accounting Conservatismmentioning

confidence: 99%

Accounting conservatism and banking expertise on board of directors

Nguyen

Duong

Nguyen

et al. 2019

Rev Quant Finan Acc

View full text Add to dashboard Cite

Previous studies show mixed evidence of the role of banking expertise on the board of directors on accounting conservatism. In this paper, we add to this growing literature by providing an innovative way to measure banking expertise based on life-time working history in banks of all individual directors on the board. We find that accounting conservatism is negatively affected by banking expertise on the board. Also, the results indicate that banking expertise on the board has a more pronounced impact on accounting conservatism when firms have high bankruptcy risk and when firms have high financial leverage. The evidence has some implications for boards of directors.

show abstract

Section: Measure Of Accounting Conservatismmentioning

confidence: 99%

Accounting conservatism and banking expertise on board of directors

Nguyen

Duong

Nguyen

et al. 2019

Rev Quant Finan Acc

View full text Add to dashboard Cite

show abstract

“…, Beaver and Ryan 2000, Caskey andPeterson 2014).At the aggregate level, in relation to GDP growth, the conservative accounting element of B/M implies that low B/M reflects an anticipation of future negative shocks to the economy. On the other hand, the low B/M that is attributable to the untimely recognition of growth implies an anticipation of future positive growth.…”

mentioning

confidence: 99%