Conservatism in Accounting - Part Ii: Evidence and Research Opportunities

By Ross L. Watts. 2003

960 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/a897d6eec221a6e02d8134aa5bf9dc4849410655

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Citations in the corpus

The Contracting Benefits of Accounting Conservatism to Lenders and Borrowers (2008, positive): “Positive accounting theory suggests that accounting conservatism plays an efficiencyenhancing role in the debt contracting process (Watts and Zimmerman, 1986; Watts, 2003a, 2003b).”
Accounting conservatism: A review of the literature (2015, background): “Holthausen and Watts (2001), Barth et al. (2001), and Watts (2003a, 2003b) also discuss the dual roles of accounting information and how conservatism may or may not be useful in each of these roles.”
Mandatory Audit Firm Rotation and Audit Quality (2016, methodology): “As a robustness test, we refer to a second definition according to which accounting conservatism consists in an asymmetric verifiability requirement for the recognition of gains vs. losses (Watts, 2003a).”
Global Accounting Convergence and the Potential Adoption of IFRS by the U.S. (Part I): Conceptual Underpinnings and Economic Analysis (2010, background): “As the use of fair value esti- ates is often viewed as increasing the amount of discretion given to managers e.g., Watts 2003a, 003b , the fair value debate is closely related to the issue of reporting discretion.”
The Role of Accruals in Asymmetrically Timely Gain and Loss Recognition (2005, positive): “Alternatively stated, accountants adopt a substantively lower verification standard for recognizing decreases in expected future cash flows than they do for recognizing increases (Basu 1997, Watts 2003).”
Measuring Reporting Conservatism (2007, background): “Conventional accounting is inherently conservative as evidenced by the fact that net assets are consistently understated (see Watts (2003a, 2003b)).”
Gender Differences in Financial Reporting Decision-Making: Evidence from Accounting Conservatism (2015, positive): “These include litigation risk, default risk, systematic risk, and management turnover risk (Watts 2003a; Biddle et al. 2010; Desai et al. 2006; Collins et al. 2009).”
Identifying Conditional Conservatism (2006, background): “However, Watts (2003a), who emphasizes verifiability somewhat more and news dependence vs. independence somewhat less than Basu, does appear to find unconditional conservatism to be useful for contracting purposes.”
Financial Reporting Incentives for Conservative Accounting: The Influence of Legal and Political Institutions (2005, neutral): “Watts (2003a)).”