This study examines the relation between narrative risk disclosures and accounting conservatism by utilizing the SEC's 2005 mandate that firms disclose “the most significant factors that make the company speculative or risky” in their 10-K filings. By viewing such risk factor disclosures...

We examine the relation between the use of collateral and accounting conservatism for a sample of Chinese firms during 2001 to 2006. China provides a powerful setting for testing the direct effect of accounting conservatism on collateral requirements because of the government's tight control...

In this paper, we illuminate the importance of accounting conservatism adjustments when estimating the implied cost of capital (ICC) with the Residual Income Valuation (RIV) and the Abnormal Earnings Growth (AEG) model. Specifically, we adjust for three main limitations in the research of ICC,...

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...

We examine the effect of second-generation state antitakeover laws (ATLs) on accounting conservatism. We adopt a novel methodology that corrects for selection bias resulting from firms' endogenous incorporation decision. Focusing on the period from when these ATLs became constitutional, we find...

The prior literature indicates that financial policy (e.g., payout policy) as well as accounting policy (e.g., conservatism) can be used to address incentive problems in firms but finds mixed evidence. We conjecture that stock repurchases, an increasingly popular form of payout, and conservatism...

The main purpose of this article is to evaluate the effects of the three pillars of Basel II, i.e. bank regulation, supervision and market discipline, on the timeliness of loan loss provisioning by banks. In particular, we analyze explicitly how regulatory and supervisory regimes interact with...

This paper (i) provides evidence on the procyclical investment behavior of major institutional investors during the global financial crisis; (ii) identifies the main factors that could account for such behavior; (iii) discusses the implications of procyclical behavior; and (iv) proposes a...

This paper empirically tests the relation between a firm's degree of accounting conservatism and its level of operating risk. This paper constitutes the first empirical study in the accounting literature to test the risk signaling theory of accounting conservatism which is recently proposed by...

Overconfident managers overestimate future returns from their firms' investments. Thus, we predict that overconfident managers will tend to delay loss recognition and generally use less conservative accounting. Furthermore, we test whether external monitoring helps to mitigate this effect. Using...

Mit dem Bilanzrechtsmodernisierungsgesetz (BilMoG) hat der deutsche Gesetzgeber eine weitreichende Änderung des deutschen Handelsrechts vorgenommen. Zielsetzung ist die Stärkung der Informationsfunktion des handelsrechtlichen Jahresabschlusses. Um dieses Ziel zu erreichen, ist nunmehr die...

Mit dem Bilanzrechtsmodernisierungsgesetz (BilMoG) hat der deutsche Gesetzgeber eine weitreichende Änderung des deutschen Handelsrechts vorgenommen. Zielsetzung ist die Stärkung der Informationsfunktion des handelsrechtlichen Jahresabschlusses. Um dieses Ziel zu erreichen, ist nunmehr die...

Mit dem Bilanzrechtsmodernisierungsgesetz (BilMoG) hat der deutsche Gesetzgeber eine weitreichende Änderung des deutschen Handelsrechts vorgenommen. Zielsetzung ist die Stärkung der Informationsfunktion des handelsrechtlichen Jahresabschlusses. Um dieses Ziel zu erreichen, ist nunmehr die...

Aufgrund der zunehmenden strategischen Bedeutung selbst erstellter immaterieller Verm?genswerte stehen diese vermehrt im Zentrum der Forschung. W?hrend zahlreiche Studien die Wertrelevanz der Aktivierung selbst erstellter immaterieller Verm?genswerte belegen, besch?ftigen sich nur wenige Studien...

Valuation always has to deal with uncertainty. The paper provides an overview and illustration of how Monte Carlo simulation can enrich the due diligence process. Therefore, the four major software offerings on the market today are reviewed. The investigation addresses different characteristics...

Non-financial risk factors play a fundamental role in supporting the competitive position of companies in many of today's industries. Though, assessing these ambiguous factors in a valuation based on a Monte-Carlo simulation is particularly difficult. This paper presents how the fuzzy-set theory...

We apply a three-tier hierarchical model of regulation, developed along the lines of Laffont and Tirole (1993), to an adverse selection problem in the corporate bond market. The bank brings the bonds to the market and informs the potential buyers about the bond risks; a unique benevolent public...

This paper studies the effects of bank accounting conservatism on the pricing of syndicated bank loans. We provide evidence that banks timelier in loss recognition charge higher spreads. We go on to consider what happens to the relationship between spreads and timeliness in loss recognition...

The paper analyzes the risk disclosure quality in the prospectus of IPOs in Germany between 2006 and 2008. Quality of risk information is measured as precision and comprehensibility. The relationship between risk disclosure quality and earnings power is tested. -- Risikoberichterstattung ;...

Seit 2006 beraten IASB/FASB in einem Konvergenzprojekt die paradigmatische Aufhebung des bisherigen pauschalen Ansatzverbots für schwebende Leasingverträge (Operating Leasing), um den Abschlussadressaten entscheidungsnützliche Informationen zu vermitteln und die Leasingbilanzierung konsistent...