unconditional conservatism and the reversion of the differences between market and book values of equity. In other words, we can … provide firm-specific measures of both conditional and unconditional conservatism with the same model. We demonstrate all …

, taking into account the interaction between unconditional and conditional conservatism. Unconditional conservatism preempts … simple analyst forecast model, I demonstrate that: 1) unconditional conservatism is negatively correlated with analysts … news firms; and 2) unconditional conservatism reduces the overall uncertainty in analysts’ forecasts. The empirical results …

We examine how two types of conservatism—conditional conservatism and unconditional conservatism—affect corporate …, unconditional conservatism mitigates a firm’s earning volatility, especially downward volatility, by providing an accounting slack …. Thus, it is likely that unconditional conservatism promotes corporate investment behavior. Using a large sample of Japanese …