This paper investigates the association between investor sentiment and accounting conservatism. We find that managers recognize economic losses in earnings in a more timely manner during periods of high investor sentiment. Further, the sentiment-conservatism relation is stronger for firms with...

Based on 16,604 observations between 1994 and 2006, this study revisits the “horizon problem” by examining how CEO retirement affects conditional accounting conservatism. We hypothesize and find that firms become less conservative in their financial reporting before the retirement of their...

This paper examines the effect of artificial intelligence (AI) adoption on corporate earnings management. We hypothesize that firm’s AI adoption increases both the marginal contributions of managers’ productive effort to firm performance and their expected costs of exerting manipulative...