Following Basu (1997), the difference between the sensitivity of accounting earnings to negative equity return (proxy for bad news) and its sensitivity to positive equity return (proxy for good news) is interpreted as an indicator of conditional accounting conservatism. However, there is concern...

We examine whether the use of fair value measurement (FVM) for bank assets reduces information asymmetry among equity investors (bid–ask spread) and how this is affected by the recognition of own credit risk gains and losses (OCR). Our findings show that FVM of assets is associated with...

How is corporate governance to be measured? Much past research has focused on forming an index but this approach ignores the correlations between the variables forming the index and may also carry redundant variables. Principal Component Analysis (PCA) is a possible solution to these issues by...