Estimation and Empirical Properties of a Firm-Year Measure of Accounting Conservatism

By Mozaffar Khan, Ross L. Watts. 2009

1,333 citations recorded by the source corpus.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/4c95ae4c093743955f2d19f86bb3dea4dc94f529

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Citations in the corpus

Zombie Board: Board Tenure and Firm Performance (2013, background): “In this section I shed light on why board tenure has an inverted U-shaped relation with firm value by examining how board tenure affects decisions related to a firm‘s: 1) M&A performance (Masulis, Wong, and Xie, 2007), 2) financial reporting quality (Biddle, Hilary, and Verdi, 2009; Dechow and Dechi”
On Estimating Conditional Conservatism (2011, methodology): “We find that the coefficient estimates for contemporaneous unexpected earnings decrease in firm size, and increase in book-to-market and leverage, consistent with prior literature (Roychowdhury and Watts, 2007; Khan and Watts, 2009) and with the analytical arguments in Ball, Kothari and Nikolaev (20”
The Bright Side of Managerial Over-Optimism (2016, methodology): “27 We use Khan and Watts’ (2009) C-Score to measure accounting conservatism.”
Do Delays in Expected Loss Recognition Affect Banks' Willingness to Lend? (2011, positive): “We follow Kishan and Opiela (2006) and Kashyap and Stein (2000) by using bank size”
The implications of research on accounting conservatism for accounting standard setting (2015, background): “This measure also underpins the firm year measures of conditional conservatism of Khan and Watts (2009) and Barth et al. (2014).”
Corporate Governance and Firm-Specific Stock Price Crashes (2016, positive): “We therefore include accounting quality as a corporate governance mechanism and use two measures previously used in the crash risk literature: opaqueness ( OPAQUE ) in the spirit of Hutton et al. (2009), and Khan and Watt’s (2009) accounting conservatism ( C_SCORE ).”
Conditional conservatism and cost of capital (2011, background): “8 There is an alternative firm-year specific measure of conservatism (c-score) developed by Khan and Watts (2009).”
Earnings management behaviors under different monitoring mechanisms: The case of Islamic and conventional banks (2016, background): “5 Accounting conservatism specifies a higher threshold for recognizing gains and a lower one for recognizing losses, with the aim of reporting strict profits and net assets (Basu, 1997; Khan and Watts, 2009).”
Does Accounting Quality Change Following a Switch from U.S. GAAP to IFRS? Evidence from Germany (2012, neutral): “Prior research also finds that the market-to-book ratio can impact accounting conservatism (LaFond and Roychowdhury, 2008; Khan and Watts, 2009).”
Internal Control and Stock Price Crash Risk: Evidence from China (2017, methodology): “Accounting conservatism is proxied by CSCORE which is calculated by following Khan and Watts (2009) and Kim and Zhang (2015).”