On the Relation Between Conservatism in Accounting Standards and Incentives for Earnings Management

By Qi Chen, T. Hemmer, Yun Zhang. 2007

252 citations recorded by the source corpus.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/6c4aa7d6b43797de0b7f0c974fe08788d36d4e7a

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

1. Jeong‐Bon Kim
2. Martin Walker
3. Liandong Zhang
4. Christopher S. Armstrong
5. Weili Ge
6. W. Guay
7. Catherine Schrand
8. Patricia M. Dechow

In Strategy and Management

1. Jeong‐Bon Kim
2. Martin Walker
3. Christopher S. Armstrong
4. Liandong Zhang
5. Weili Ge
6. Joseph P. Weber
7. Catherine Schrand
8. W. Guay

Citations in the corpus

• Accounting Conservatism and Stock Price Crash Risk: Firm-level Evidence. (2012, background): “…verification standards, although inferred from publicly available information, have disciplinary effects on managers’ privately observed information (Chen, Hemmer, and Zhang 2007; Gao 2012; LaFond and Watts 2008).12 Measurement of firm-specific crash risk Following Hutton et al. (2009) and Kim et…”
• Accounting Conservatism and Firm Investment Efficiency (2016, unknown): “Finally, conservatism deters the artificial inflation of earnings (Chen et al., 2007; Gao, 2013).”
• The Effect of Accounting Conservatism on Corporate Investment during the Global Financial Crisis: THE EFFECT OF ACCOUNTING CONSERVATISM (2016, unknown): “On the theory side, Chen et al. (2007) show that accounting conservatism reduces managers’ incentives for earnings management and improves contract efficiency.”
• The Role of Information and Financial Reporting in Corporate Governance and Debt Contracting (2010, background): “                                                             47 The two conditions Chen et al. (2007) describe would seem to hold for family-owned firms.”
• The implications of research on accounting conservatism for accounting standard setting (2015, background): “Chen et al. (2007) show that conservative accounting can serve to reduce the incentives for earnings management.”
• Understanding Earnings Quality: A Review of the Proxies, Their Determinants and Their Consequences (2010, background): “Theory papers have examined the impact of multiple incentives on accounting choice (e.g., Demski, 1973; Evans and Sridhar, 1996; Liang, 2004; Chen et al., 2007) and analyzed the effect of variations in optimal contracts (Sridhar and Magee, 1996).”
• Accounting Information in Financial Contracting: The Incomplete Contract Theory Perspective (2016, unknown): “, Christensen and Nikolaev, 2012, Dyreng, Vashishtha, and Weber, 2014, Li, Vasvari, Wittenberg-Moerman, 2014, and Hollander and Verriest, 2015). Christensen and Nikolaev (2012) argue that capital covenants and performance covenants encountered in private debt contracts play conceptually different ro”
• The Adoption of IFRS 3: The Effects of Managerial Discretion and Stock Market Reactions (2011, background): “…system ensures that assets are not overstated (Basu, 1997) and consequently this not only imposes explicit constraints and reduces managers’ opportunities to introduce biases (Watts, 2003; LaFond and Watts, 2008), but it also reduces managers’ ability to manipulate earnings (Chen et al., 2007).”
• Conditional conservatism and the limits to earnings management (2020, unknown): “The empirical evidence of Cohen et al. (2008) is consistent with this view and indicates that, following the passage of SOX, which included governance provisions aimed at strengthening the monitoring over the financial reporting system, accrual-based manipulation declined while real earnings managem”