Exercising prudence: The influence of accounting conservatism on the caliber of corporate information environment in the Philippines

• Main Authors: Leachon, Rachel Caroline, Reyes, Sedfrey, Samson, Ralph Edward C., Teng, Alvin Simon
• Format: text
• Language: English
• Published: Animo Repository 2014
• Subjects: Managerial accounting; Accounting theory; Accounting
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/10689
• Institution: De La Salle University

This paper seeks to discover the effect of accounting conservatism to the corporate information environment of the Philippines. This paper utilizes an empirical measure to gauge the conservative accounting behavior, before integrating the measure for corporate information quality. The model is supported by a theoretical framework that significantly relies on the managers influence to stock prices. Philippine publicly-listed firms are the primary data for this research. Conservatism has implanted its deep roots in the profession of accounting and financial reporting behavior. Despite its recent removal from the conceptual framework of standard setting bodies, it evidently exists in substance pertaining to accounting standards issued (IAS2 Inventories, IAS16 Property, Plant and Equipment, and etc.). Accounting conservatism still persists to contribute to the quality of financial reports issued by companies. This study stresses the significant effect of this principle to the overall information environment.