Accounting Conservatism and Bankruptcy Risk
AuthorBiddle, G; Ma, MLZ; Song, FM
Source TitleJournal of Accounting Auditing & Finance
University of Melbourne Author/sBiddle, Gary
Document TypeJournal Article
CitationsBiddle, G., Ma, M. L. Z. & Song, F. M. (2020). Accounting Conservatism and Bankruptcy Risk. Journal of Accounting Auditing & Finance, Forthcoming, https://doi.org/10.1177/0148558X20934244.
Access StatusThis item is embargoed and will be available on 2022-06-01
For a large sample of U.S. listed firms, we find that unconditional and conditional accounting conservatism help lower bankruptcy risk. We further find that the mitigating effect of accounting conservatism on bankruptcy risk functions via cash enhancement and earnings management mitigation channels. This evidence is relevant to accounting standards setting, financial regulation, financial risk management, and helps explain conservatism’s longstanding presence as a pervasive feature of financial accounting.
- Click on "Export Reference in RIS Format" and choose "open with... Endnote".
- Click on "Export Reference in RIS Format". Login to Refworks, go to References => Import References