Asymmetric timeliness tests of accounting conservatism

By J. Dietrich, Karl A. Muller, Edward J. Riedl. 2007

377 citations recorded by the source corpus.

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Citations in the corpus

Executive Stock Options, Missed Earnings Targets and Earnings Management (2008, neutral): “that conditional on type of news, the two modes of communicating bad news are negatively correlated (Gigler and Hemmer 2001; Givoly et al. 2007; Dietrich et al. 2007).”
The implications of research on accounting conservatism for accounting standard setting (2015, result): “The reliability of the DT measure has been called into doubt by the recent works of Dietrich et al. (2007), CanoRodriguez and Nunez-Nickel (2015) and Patatoukas and Thomas (2011, 2014).”
More Evidence of Bias in the Differential Timeliness Measure of Conditional Conservatism (2011, positive): “11 For example, Givoly and Hayn (2000) posit that left skewness of the earnings distribution is consistent with conditional conservatism.”
Board of Directors' Characteristics and Conditional Accounting Conservatism: Spanish Evidence (2007, methodology): “The reason for using an alternative measure of conditional conservatism is the recent evidence in Dietrich et al. (2007), who show that the Basu approach may produce biased results and recommend the use of alternative methods to validate the results.”
Earnings Restatements and Differential Timeliness of Accounting Conservatism (2012, neutral): “However, some recent papers (Dietrich et al., 2007; Givoly et al., 2007; Patoukas and Thomas, 2011) have challenged the usefulness of Basu's primary conservatism measure, the differential timeliness (DT) coefficient.”
Debt Covenants and Accounting Conservatism (2010, methodology): “Fiscal-year returns are used to mitigate the concerns raised in Dietrich, Muller, and Riedl (2007) (see Ryan 2006 for a discussion).”
The Allowance for Uncollectible Accounts, Conservatism, and Earnings Management (2010, neutral): “For example, evidence suggests that Basu’s (1997) differential timeliness measure (i) results in biased test statistics (Dietrich et al. 2007), (ii) may be influenced by characteristics of the firm’s information environment (Givoly et al.”
Influence of National Culture on Accounting Conservatism and Risk Taking in the Banking Industry (2014, neutral): “Given the call- 2 Many prior studies argue that conservatism measured using a Basu-type regression is noisy (e.g., Dietrich et al. 2007).”
Conditional conservatism and cost of capital (2011, methodology): “…a firm-level measure of conditional conservatism (as in Callen et al. 2010) to overcome the possible biases in the Basu (1997) measure described by Dietrich, Muller, and Riedl (2007), Givoly et al. (2007) and Patatoukas and Thomas (2009); (b) we do not rely on ex ante measures of the cost of…”
Matching and the Changing Properties of Accounting Earnings over the Last 40 Years (2008, background): “, Fairfield et al. (1996), Sloan (1996), Piotroski (2000), Nissim and Penman (2001), and many others; Dechow and Schrand (2004) provide a useful overview of this literature.”
Evidence on the Role of Accounting Conservatism in Monitoring Managers' Investment Decisions (2011, background): “Additionally, Dietrich et al. (2007) claim that the observed differences between good and bad news in the Basu regression is because of the sample truncation bias and sample variance ratio.”
Accounting Conservatism and Board of Director Characteristics: an Empirical Analysis (2007, critical): “8 Additionally, Dietrich et al. (2005) claim that the observed differences between good and bad news timeliness is due to the sample truncation bias and sample variance ratio.”
Econometrics of the Basu Asymmetric Timeliness Coefficient and Accounting Conservatism (2013, neutral): “We also address the Dietrich et al. (2007) claim that return endogeneity and sample truncation lead to biased Basu regression estimates.”
Identifying Conditional Conservatism (2006, background): “Some initial steps have been taken towards incorporating conditional conservatism into the general accounting-based valuation framework developed in various papers by Feltham and Ohlson (1995, 1996). For example, Price (2005) distinguishes favorable and unfavorable ‘other information’ in such a fram”