Search results for "conservatism"
showing 10 items of 60 documents
On the Asymmetric Recognition of Good and Bad News in France, Germany and the United Kingdom
2001
We investigate whether accounting systems recognise bad news more promptly in earnings than good news, where news is proxied by changes in share price. The analysis is based on a sample of firm/years drawn from France, Germany, and the UK during 1990 to 1998. These three countries are the originators of three distinct legal traditions. Previous studies have argued that asymmetric recognition, one manifestation of conservative accounting, is sensitive to legal background and history. We find that in all three countries the contemporaneous association between earnings and returns is much stronger for bad news (i.e. when price changes are negative) than for good news, and although the results …
Balance sheet versus earnings conservatism in Europe
2004
In this study we extend prior research on the international analysis of accounting conservatism (Joos and Lang, 1994; Ball et al., 2000; Giner and Rees, 2001), by examining the level of accounting conservatism across eight European countries (United Kingdom, Germany, France, Switzerland, the Netherlands, Italy, Spain and Belgium), and assessing the statistical significance of the differences among them. The definitions of conservatism that we use are, on the one hand, the Feltham and Ohlson (1995) definition, which implies a persistent understatement of book value of shareholders' equity (balance sheet conservatism). On the other hand, we use the one proposed by Basu (1997), that is, a time…
Green conservatism or environmental nativism? Exploring carbon dependency as populist political strategy in Poland
2021
The paper aims at describing and explaining the carbon-dependency political strategy in climate-energy policies as an exemplary case of populist politics in Poland. Under the slogan of green conservatism, the nativist Polish governments led by PiS (Prawo i Sprawiedliwo´s´c/Law and Justice) pursue climate-energy policies of environmental irresponsibility. The inertia in the Polish climate-energy policy creates one of the most dangerous mixes of populist politics and the (state) organized environmental hypocrisy. Explaining the gap emerging between the globally agreed goals and domestic policy delivery failure (and the dynamics in which it is created) allows us understand the factors determin…
The Effects of IFRS Adoption on the Unconditional Conservatism of Spanish Listed Companies
2017
This paper analyses the effects on unconditional conservatism of the mandatory adoption of International Financial Reporting Standards (IFRS) by Spanish listed companies in January 2005. The lack of robustness in the previous evidence justifies analysing this issue from different perspectives. To this end, we use, for the first time in this context, Ahmed and Duellman’s methodology (J. Account. Econ., 2007). In its design, these authors consider the impact of growth options and other future incomes, controlling for the idiosyncratic factors that the literature has found to condition this type of conservatism. Additionally, beyond the pooled regression techniques usually used, we use econome…
Leaps and bounds: geographical and ecological distance constrained the colonisation of the Afrotemperate by Erica.
2018
Abstract Background The coincidence of long distance dispersal (LDD) and biome shift is assumed to be the result of a multifaceted interplay between geographical distance and ecological suitability of source and sink areas. Here, we test the influence of these factors on the dispersal history of the flowering plant genus Erica (Ericaceae) across the Afrotemperate. We quantify similarity of Erica climate niches per biogeographic area using direct observations of species, and test various colonisation scenarios while estimating ancestral areas for the Erica clade using parametric biogeographic model testing. Results We infer that the overall dispersal history of Erica across the Afrotemperate…
Women Involved in the Financial Reporting Process and Financial Reporting Quality
2017
We examine how the presence of women involved in the financial reporting process of public companies, and especially the interactions between them (i.e. the simultaneous presence of a woman CFO, women sitting on the audit committee, and women auditors), impacts financial reporting quality. For our sample of large French companies, we find that women do not affect financial reporting quality when interactions are not considered. However, the interactions between women involved in the financial reporting are associated with lower discretionary accruals and higher C-scores (our measure of conservatism), as expected because women are generally more risk averse and have greater ethical sensitivi…
Conservatism and Accounting Earnings
2015
The article refers to accounting conservatism and its relation with accounting earnings. After providing the conceptual background of the prudence concept, which is the basis of accounting conservatism, the paper introduces some more empirically testable concepts, known as conditional and unconditional conservatism. It also explains the economics behind this accounting practice, mainly associated to contracting due to the asymmetric information between managers and external stakeholders, but also linked to litigation risks, taxation, political and regulatory processes. After providing a brief explanation of the empirical measures of conservatism, it gives a summary of the vast empirical res…
Relation between Social Conservatism, Moral Competence, Moral Orientations, and the Importance of Moral Foundations
2017
AbstractThis paper examines the relation between moral competence, moral orientations, importance of moral foundations, and political orientation, by combining two theoretical approaches in moral psychology--the cognitive perspective and social-intuitionist perspective. The participants (Study 1 N=348, aged 18 to 67, and Study 2 N = 361, aged 16 to 74) completed the Moral Competence Test (formerly Moral Judgment Test, Lind, 1978, 2008), the 30-Item Full Version of the Moral Foundations Questionnaire (Graham, Haidt & Nosek, 2008), and measurements of political orientation (a seven-point self-evaluation scale in study 1 and an 8-item social conservatism scale in Study 2). There was a nega…
The Role of Assumptions in Ohlson Model Performance: Lessons for Improving Equity-Value Modeling
2021
In this paper, we test whether the short-run econometric conditions for the basic assumptions of the Ohlson valuation model hold, and then we relate these results with the fulfillment of the short-run econometric conditions for this model to be effective. Better future modeling motivated us to analyze to what extent the assumptions involved in this seminal model are not good enough approximations to solve the firm valuation problem, causing poor model performance. The model is based on the well-known dividend discount model and the residual income valuation model, and it adds a linear information model, which is a time series model by nature. Therefore, we adopt the time series approach. In…
Macrosystem community change in lake phytoplankton and its implications for diversity and function
2023
Aim We use lake phytoplankton community data to quantify the spatio-temporal and scale-dependent impacts of eutrophication, land-use and climate change on species niches and community assembly processes while accounting for species traits and phylogenetic constraints. Location Finland. Time period 1977–2017. Major taxa Phytoplankton. Methods We use hierarchical modelling of species communities (HMSC) to model metacommunity trajectories at 853 lakes over four decades of environmental change, including a hierarchical spatial structure to account for scale-dependent processes. Using a “region of common profile” approach, we evaluate compositional changes of species communities and trait profil…