Conditional conservatism and debt versus equity financing

• Main Authors: Goh, Beng Wee, Lim, Chee Yeow, Lobo, Gerald J., Tong, Yen Hee
• Other Authors: Nanyang Business School
• Format: Article
• Language: English
• Published: 2019
• Subjects: Business::Accounting; Conditional Conservatism; Equity
• Online Access: https://hdl.handle.net/10356/107100; http://hdl.handle.net/10220/49048
• Institution: Nanyang Technological University

Extant research suggests that conditional conservatism reduces information asymmetry between a firm and its shareholders as well as its debtholders. However, there is little evidence on whether conditional conservatism reduces information asymmetry differentially for shareholders and debtholders. We...