Khan and Watts (2009) develop a firm-year measure of conditional conservatism, labeled C_Score, that builds on the Basu (1997) asymmetric timeliness (AT) measure. However, recent research documents an asymmetric relation between lagged earnings and current returns, indicative of bias in the Basu...

We examine how the provision of quarterly earnings guidance is affected by constraints on earnings management. We argue that costs of falling short of one's own guidance make managers reluctant to issue guidance without sufficient flexibility in their financial reporting system to manage...