Using Machine Learning to Measure Conservatism

• 成果类型: Article
• 署名作者: Bertomeu, Jeremy; Cheynel, Edwige; Liao, Yifei; Milone, Mario
• 署名单位: Washington University (WUSTL); University of California System; University of California Irvine; University of California System; University of California San Diego
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2024.4983
• 发表日期: 2025
• 关键词: Machine learning; Neural Network; Accounting; conservatism; measure

摘要

This study proposes an approach to measure conservatism using machine learning techniques that are not constrained by functional form restrictions. We extend the differential timeliness model to allow for observable characteristics related to conservatism to follow nonlinear relationships. By developing machine learning measures of conservatism, we draw attention to potential benefits and drawbacks and show how its insights complement conventional measures. Our broader goal is to investigate the effectiveness of machine learning algorithms for filtering noise in traditional archival studies and uncovering more complex empirical patterns.