Purpose – This study seeks to examine the relation between non‐audit services provided by incumbent auditors and an important aspect of earnings quality – conservatism, using New Zealand data. Conservatism is defined as the adoption of accounting policies that accelerate expenses towards...

Purpose: The authors examine whether Chinese banks use loan loss provisions (LLPs) for capital management, income smoothing and signaling purposes, and assess the effect of the recent regulatory changes following the implementation of Chinese Basel III on such behavior....