We develop a mixed-duopoly model in which a private firm competes against a state owned enterprise (SOE) who cares about social welfare and is privately informed of market demand. When the SOE's social concerns are sufficiently important and when the market competitiveness is sufficiently low,...

Based on pooled cross-sectional analysis, we find a robust positive relation between product market competition and conditional accounting conservatism. We also find evidence of an inter-temporal increase in conditional conservatism following industry deregulation and increased antitrust case...