Earnings conservatism and value relevance across the business cycle

Journal of Business Finance and Accounting

Volumn 36, Issue 9-10, 2009, Pages 1041-1058

  Jenkins, David S ^a   Kane, Gregory D ^a   Velury, Uma ^a  

^a UNIVERSITY OF DELAWARE   (United States)

Author keywords

Business cycle; Conservatism; Value relevance

Indexed keywords

EID: 70449331241     PISSN: 0306686X     EISSN: 14685957     Source Type: Journal    
DOI: 10.1111/j.1468-5957.2009.02164.x     Document Type: Article

References (36)

1. Ali, A. and P. Zarowin (1992 The Role of Earnings Levels in Annual Returns-Earnings Studies Journal of Accounting Research, Vol. 30, No. 2, pp. 286 296.
2. Ball, R. and P. Brown (1968 An Empircal Evaluation of Accounting Income Numbers Journal of Accounting Research, Vol. 6, No. 2, pp. 159 178.
3. Ball, R. and L. Shivakumar (2005 Earnings Quality in U.K. Private Firms: Comparative Loss Recognition Timeliness Journal of Accounting and Economics, Vol. 39, pp. 83 128.
4. Ball, R., S. Kothari and A. Robin (2000 The Effect of Institutional Factors on Properties of Accounting Earnings Journal of Accounting Research, Vol. 29, pp. 1 51.
5. Ball, R., A. Robin and J. Wu (2003 Incentives vs. Standards: Properties of Accounting Income in Four East Asian Countries Journal of Accounting and Economics, Vol. 36, pp. 235 270.
6. Basu, S. (1997 The Conservatism Principle and the Asymmetric Timeliness of Earnings Journal of Accounting and Economics, Vol. 24, pp. 3 37.
7. Beaver, W. and S. Ryan (2005 Conditional and Unconditional Conservatism: Concepts and Modeling Review of Accounting Studies, Vol. 10, pp. 269 309.
8. Beaver, W., R. Lambert and D. Morse (1980 The Information Content of Security Prices Journal of Accounting and Economics, Vol. 2, pp. 3 28.
9. Brown, W., H. He and K. Teitel (2006 Conditional Conservatism and the Value Relevance of Accounting Earnings: An International Study European Accounting Review, Vol. 15, pp. 605 626.
10. Choi, W. (2007 Bank Relationships and the Value Relevance of the Income Statement: Evidence from Income Statement Conservatism Journal of Business Finance & Accounting, Vol. 34, pp. 1051 1072.
11. Collins, D. and S.P. Kothari (1989 An Intertemporal and Cross-sectional Determinants of Earnings Response Coefficients Journal of Accounting and Economics, Vol. 11, Nos. 2&3, pp. 143 182.
12. Collins, D. S.P. Kothari, J. Shanken and R. Sloan (1994 The Lack of Timeliness and Noise as Explanations for the Low Contermporaneous Returns-Earnings Association Journal of Accounting and Economics, pp. 289 324.
13. Easton, P. and T. Harris (1991 Earnings as Explanatory Variables for Returns Journal of Accounting Research, Vol. 29 (Spring pp. 19 36.
14. Ely, K. and G. Waymire (1999 Accounting Standard-setting Organizations and Earnings Relevance: Longitudinal Evidence from NYSE Common Stocks, 1927-93 Journal of Accounting Research, Vol. 37, No. 2, pp. 293 317.
15. Francis, J. and K. Schipper (1999 Have Financial Statements Lost their Relevance? Journal of Accounting Research, Vol. 37, No. 2, pp. 319 352.
16. Francis, J., R. Lafond, P. Olsson and K. Schipper (2004 Cost of Equity and Earnings Attributes The Accounting Review, Vol. 79, No. 4, pp. 967 1010.
17. Givoly, D. and C. Hayn (2000 The Changing Time-series Properties of Earnings, Cash Flows and Accruals: Has Financial Reporting Become More Conservative? Journal of Accounting and Economics, Vol. 29, pp. 287 320.
18. Huijgen, C. and M. Lubberink (2001 Earnings Conservatism, Litigation and Contracting: The Case of Cross-Listed Firms Journal of Business Finance & Accounting, Vol. 32, Nos. 7 & 8, pp. 1275 1309.
19. Jenkins, D., G. Kane and U. Velury (2007 Earnings Conservatism and Audit Quality: An Examination of the Late 1990s Journal of Forensic Accounting, pp. 287 302.
20. Johnson, M.F. (1999 Business Cycles and the Relation between Security Returns and Earnings Review of Accounting Studies, Vol. 14, pp. 93 117.
21. Kane, G., F. Richardson and P. Graybeal (1996 Recession-induced Stress and the Prediction of Corporate Failure Contemporary Accounting Research (Fall pp. 631 650.
22. Kellogg, R. (1984 Accounting Activities, Security Prices and Class Action Lawsuits Journal of Accounting and Economics, Vol. 6 (December pp. 185 204.
23. Kormendi, R. and R. Lipe (1987 Earnings Innovations, Earnings Persistence and Stock Returns Journal of Business, Vol. 60, pp. 323 345.
24. Kothari, S. and R. Sloan (1992 The Information in Prices about Future Earnings: Implications for Earnings Response Coefficients Journal of Accounting and Economics, Vol. 15, pp. 143 171.
25. Krishnan, G. and P. Chaney (2007 Did Earnings Conservatism Increase for Former Andersen Clients? Journal of Accounting, Auditing, and Finance, Vol. 22, No. 2, pp. 141 174.
26. Lara, J., B. Osma and F. Penalva (2009 The Economic Determinants of Conditional Conservatism Journal of Business Finance & Accounting, Vol. 36, Nos. 3&4 (April/May pp. 336 372.
27. Lev, B. and P. Zarowin (1999 The Boundaries of Financial Reporting and How to Extend Them Journal of Accounting Research, Vol. 37, No. 2, pp. 353 385.
28. Lundholm, R. and L. Myers (2002 Bringing the Future Forward: The Effect of Disclosure on the Returns-Earnings Relation Journal of Accounting Research, Vol. 40, No. 3, pp. 809 839.
29. Myers, S.C. (1984 The Capital Structure Puzzle Journal of Finance, Vol. 39, pp. 579 592.
30. Pope, P. and M. Walker (1999 International Differences in the Timeliness, Conservatism and Classifcation of Earnings Journal of Accounting Research, Vol. 37 (Supplement pp. 53 87.
31. Richardson, F. M., G. Kane and P. Graybeal (1998 The Impact of Recession on the Prediction of Corporate Failure Journal of Business Finance & Accounting, Vol. 25, pp. 167 186. (Pubitemid 128030075)
32. Warfield, T. and J. Wild (1992 Accounting Recognition and the Relevance of Earnings as an Explanatory Variable for Returns The Accounting Review, Vol 67, No. 4, pp. 821 842.
33. Watts, R. (1993 A Proposal for Research on Conservatism', Presented at the American Accounting Association Annual Meeting (San Francisco, CA).
34. Watts, R. (2003 Conservatism in Accounting Part 1: Explanations and Implications Accounting Horizons, Vol. 3 (September pp. 207 221.
35. Willekens, M. and H. Bauwhede (2003 Auditor Reporting Conservatism as a Defense Mechanism Against Increased Post-Enron Litigation Risk Working Paper.
36. Zhang, J. (2008 The Contracting Benefits of Conservatism to Lenders and Borrowers Journal of Accounting and Economics, Vol. 45, No. 1, pp. 27 54.