More Evidence of Bias in the Differential Timeliness Measure of Conditional Conservatism

By Panos N. Patatoukas, Jacob K. Thomas. 2011

227 citations recorded by the source corpus.

Subfields: Accounting, Finance

View Paper: https://www.semanticscholar.org/paper/d6860bfdafc1811cd23025ab81b159fd5176eb6d

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. Beatriz García Osma
2. Juan Manuel García Lara
3. Martin Walker
4. Fernando Penalva
5. Araceli Mora
6. Michael Neel
7. Anwer S. Ahmed
8. Dechun Wang

In Finance

1. Martin Walker
2. Araceli Mora
3. Beatriz García Osma
4. Anwer S. Ahmed
5. Juan Manuel García Lara
6. Dechun Wang
7. Michael Neel
8. Fernando Penalva

Citations in the corpus

• The Effect of Accounting Conservatism on Corporate Investment during the Global Financial Crisis: THE EFFECT OF ACCOUNTING CONSERVATISM (2016, unknown): “17 See, for example, Dietrich et al. (2007), Givoly et al. (2007), Roychowdhury and Watts (2007), Patatoukas and Thomas (2011, 2015), Ball et al. (2013a, 2013b), Lawrence et al. (2013), Roychowdhury and Martin (2013), Collins et al. (2014), Cano‐Rodríguez and Núñez‐Nickel (2015), and Banker et al.…”
• The Confounding Effect of Cost Stickiness on Conservatism Estimates (2016, unknown): “For many 1 Although Dietrich et al. (2007), Givoly et al. (2007), and Patatoukas and Thomas (2011) critique the Basu (1997) asymmetric timeliness regression on economic and econometric grounds, the model is defended by Ryan (2006), Basu (2009), and Ball et al. (2013a, b).”
• Earnings Restatements and Differential Timeliness of Accounting Conservatism (2012, unknown): “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.”
• Econometrics of the Basu Asymmetric Timeliness Coefficient and Accounting Conservatism (2013, unknown): “, 2007), and that coefficient estimates are biased and should be avoided by researchers (Patatoukas and Thomas, 2011).”
• Measuring audit quality (2021, unknown): “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.”
• Does Mandatory Adoption of IFRS improve Accounting Quality? Preliminary Evidence (2013, background): “Patatoukas and Thomas (2011) find that the bias in the measure can be exacerbated by scale and variance of stock returns.”
• 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).”
• Conditional conservatism and the limits to earnings management (2020, background): “12 Dietrich et al. (2007), Givoly et al. (2007), Patatoukas and Thomas (2011, 2016) and Dutta and Patatoukas (2017) highlight several problems with the Basu (1997) model.”
• The Relation Between Reporting Quality and Financing and Investment: Evidence from Changes in Financing Capacity: REPORTING QUALITY AND FINANCING AND INVESTMENT (2014, unknown): “We estimate IAC_spread following Madhavan, Richardson, and Roomans [1997] (as described in Armstrong et al. [2011]).”