Discussion of an economic framework for conservative accounting and Bushman and Piotroski (2006)

• 成果类型: Article; Proceedings Paper
• 署名作者: Guay, Wayne; Verrecchia, Robert
• 署名单位: University of Pennsylvania
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2006.03.003
• 发表日期: 2006
• 关键词: earnings; Timeliness; incentives

摘要

We offer an economic framework for generating predictions about the demand for conservative accounting reports. We define conservatism as: More timely recognition of losses than gains as a result of the costs and benefits of reporting verifiable information by managers and/or firms being asymmetric. We also discuss Bushman and Piotroski's interpretation of the speeds of good news recognition and incremental bad news recognition in Basu-type regressions as separate signals about accounting conservatism. Finally, we suggest avenues for future research that seeks to investigate the links between institutions and contracts, and between contracts and conservatism. (c) 2006 Elsevier B.V. All rights reserved.