The role of accounting conservatism in firms' financial decisions

• Main Author: LEE, Jimmy Kiat Bee
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2012
• Subjects: Accounting Conservatism; Access to Capital; Financial Constraint; Accounting; Corporate Finance
• Online Access: https://ink.library.smu.edu.sg/soa_research/903; http://aaahq.org/meetings/FARS2012/11-437-PAPER12.pdf
• Institution: Singapore Management University

This paper investigates whether financial reporting conservatism is related to firms’ financial flexibility and their access to capital. If conservatism facilitates monitoring and governance by capital providers, they should be more willing to extend financing and increase firms’ access to capital....