On Estimating Conditional Conservatism

By Valeri V. Nikolaev. 2011

247 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/a0f903af15fe19353607981ad790ca7c58628b00

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Citations in the corpus

Earnings Restatements and Differential Timeliness of Accounting Conservatism (2012, unknown): “, 2007; Patoukas and Thomas, 2011), Ball et al. (2011) recently call for new evidence on the usefulness of the measure.”
Product market competition and conditional conservatism (2014, unknown): “8 Ball et al. (2012) demonstrate that when firm-specific effects in earnings are taken into account, estimates of asymmetric timeliness do not exhibit the bias identified in Patatoukas and Thomas (2011) and are statistically and economically significant (though smaller in magnitude).”
Political Uncertainty and Accounting Conservatism (2013, unknown): “, the political cost hypothesis proposed by Watts and Zimmerman 1978, 1986). As Watts and Zimmerman (1978) put it “by avoiding the attention that high profits draw because of the public’s association of high reported profits and monopoly rents managers can reduce the likelihood of adverse political ”
Accounting Conservatism and Stock Price Crash Risk: Firm-level Evidence. (2012, unknown): “Several recent studies criticize the validity of the Basu (1997) model in capturing conditional conservatism and claim that the Basu coefficient is biased (e.”
The Confounding Effect of Cost Stickiness on Conservatism Estimates (2016, unknown): “We use data for publicly traded US firms from 1987 to 2007 to examine the confounding effect of cost stickiness in the Basu (1997), Ball et al. (2013b), and Collins et al. (2014) models.1 Controlling for the asymmetric effect of sales changes reveals an average bias in conservatism estimates of…”
Cash flow asymmetry: Causes and implications for conditional conservatism research $ (2014, methodology): “The main takeaways from the analysis in this section are: (1) CFO asymmetry is a pervasive source of bias in conventional earnings DT estimates; (2) controlling for expected earnings/expected return covariance as suggested by Ball et al. (2013b) reduces the bias, but does not remove it completely; (”
Econometrics of the Basu Asymmetric Timeliness Coefficient and Accounting Conservatism (2013, unknown): “6 We focus on shocks to firm value, ignoring variation in expected returns, the implicit assumption being that variation in expected returns either does not occur or is controlled for as discussed in Ball et al. (2013).”
Corporate Suppliers and Customers and Accounting Conservatism (2012, background): “We do not have this ‘buffer problem’ and find evidence consistent with theory because we estimate timeliness of earnings using a long rolling window prior to the event year (Roychowdhury and Watts, 2007; Ball et al., 2011).”
Measuring audit quality (2021, unknown): “However, reporting characteristics are rife with measurement error and bias (Kothari, Leone, and Wasley 2005; Dietrich, Muller, and Riedl 2007; Patatoukas and Thomas 2011; Ball, Kothari, and Nikolaev 2013).”
Accounting Conservatism and Firm Investment Efficiency (2016, unknown): “Some authors claim it is invalid (e.g., Dietrich et al., 2007; Givoly et al., 2007; Patatoukas and Thomas, 2011), while others such as Ball et al. (2013a, 2013b) provide a number of counterarguments.”