Identifying Conditional Conservatism
Year: 2006
Type: article
Abstract: This paper provides guidance for empiricists interested in measuring conditional conservatism and in interpreting associations of those measures with variables of interest. I begin by discussing the nature and importance of conditional conservatism and surveying the literature identifying conditional conservatism. I then describe and comment on the various limitations of asymmetric timeliness identified in the literature. Despite these limitations, I argue that asymmetric timeliness is the most direct implication of conditional conservatism, and that alternative measures that have been proposed need not capture any type of conservatism. Finally, I provide four specific suggestions for estimating asymmetric timeliness and for interpreting it as a measure of conditional conservatism.
Source: European Accounting Review
Author: Stephen G. Ryan
Institution: New York University
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2004857692