Accounting Conservatism:A Study of Market-Level and Firm-Level Explanatory Factors

• 作者: Changjiang Lu Jingjing Xu
• 来源期刊: 中国会计学刊：英文版
• 学科: 经济
• 关键词: ACCOUNTING CONSERVATISM market-level firm-level A-
• 年，卷（期）: 2008,（1）
• 页码范围: 11-29
• 页数: 19页
• 分类号: F233

摘要

This paper investigates the factors affecting the conservatism of accounting reports at the market-level and firm-level. At the market-level, law and institutional factors explain conservatism, while at the firm-level contracting is the driver. We predict and observe that while both levels jointly affect conservatism, it is firm-level factors that play a dominant role. The conclusion suggests that it is more effective to improve the quality of accounting reports by motivating the firm’s own demand rather than through listing in a developed capital market.