An Analytical and Empirical Measure of the Degree of Conditional Conservatism

• Main Authors: SEGAL, Dan, Callen, Jeffrey L.
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2012
• Subjects: conditional conservatism; analytical model; switching regressions; sample selectivity; Accounting; Corporate Finance
• Online Access: https://ink.library.smu.edu.sg/soa_research/1076; https://ink.library.smu.edu.sg/context/soa_research/article/2075/viewcontent/SSRN_id1462778.pdf
• Institution: Singapore Management University

There is a profound gap between models of accounting conservatism and the proxies for conditional conservatism currently used by the empirical literature. Not one of the proxies employed by the empirical literature to date obtains from a rigorous definition of conditional conservatism. In contrast,...