Product market competition and conditional conservatism

• 成果类型: Article
• 署名作者: Dhaliwal, Dan; Huang, Shawn; Khurana, Inder K.; Pereira, Raynolde
• 署名单位: University of Arizona; Arizona State University; Arizona State University-Tempe; University of Missouri System; University of Missouri Columbia
• 刊物名称: REVIEW OF ACCOUNTING STUDIES
• ISSN/ISSBN: 1380-6653
• DOI: 10.1007/s11142-013-9267-2
• 发表日期: 2014
• 页码: 1309-1345
• 关键词: auditor industry expertise; asymmetric timeliness; unconditional conservatism; distributional properties; capital structure; to-book; earnings; incentives; governance; COMPUSTAT

摘要

Based on pooled cross-sectional analysis, we find a robust positive relation between product market competition and conditional accounting conservatism. We also find evidence of an inter-temporal increase in conditional conservatism following industry deregulation and increased antitrust case filings. Distinguishing further between two dimensions of competition, we find conditional conservatism is greater when there is a higher threat of new entrants as well as stiff existing competition. Moreover, we find these results largely hold for industry followers as opposed to industry leaders, suggesting that strategic considerations shape the extent to which product market competition affects conditional conservatism.