Discussion of 'Conditional and Unconditional Conservatism
Author | : Sudipta Basu |
Publisher | : |
Total Pages | : 0 |
Release | : 2016 |
ISBN-10 | : OCLC:1376938207 |
ISBN-13 | : |
Rating | : 4/5 ( Downloads) |
Download or read book Discussion of 'Conditional and Unconditional Conservatism written by Sudipta Basu and published by . This book was released on 2016 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Beaver and Ryan (Beaver, W. H., Ryan S. G. (2005). Review of Accounting Studies 10: (2/3)) algebraically model, simulate and graph the effects of various factors on the nonlinear earnings-return relation induced by conditional conservatism. Their analysis clarifies how conditional and unconditional conservatism are inter-related. I discuss why unconditional and conditional conservatism are more than mere substitutes, and provide evidence from the historical record. I then highlight a few areas for future modeling, before moving on to discuss potential empirical tests of their predicted relations. I identify some research questions and opportunities for future investigation.