Using a sample of firms from France, where the law requires use of two auditors, we examine the effect of auditor pair composition on overall measures of unconditional and conditional conservatism, as well as on a specific measure of conditional conservatism, i.e., impairment loss. We use game...

In this note we propose an alternative test specification for Basu’s (<CitationRef CitationID="CR9">1997</CitationRef>) time series measure of conservatism that is related to the threshold unit root test of Enders and Granger (<CitationRef CitationID="CR18">1998</CitationRef>). We argue that a regression of changes in earnings on the lagged levels—rather than lagged changes—,...</citationref></citationref>

In face of broad adoption of International Financial Reporting Standards (IFRS), the Securities and Exchange Commission (SEC) is considering its quality and acceptability. This paper reports a study that examines changes in value relevance with a sample of Peru firms mandated to use...