Kravet, Todd D. - In: Journal of Accounting and Economics 57 (2014) 2, pp. 218-240
Watts (2003) and Ball and Shivakumar (2005) argue that accounting conservatism decreases managerial incentives to make negative net present value investments. I develop and test a new hypothesis that accounting conservatism is associated with managers making less risky investments. I find that...