Investment Business Weekly
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Accounting and Economics
New accounting and economics data have been reported by A. Beatty and co-authors
September 7th, 2008
According to recent research published in the Journal of Accounting & Economics, "Despite the unquestionable influence of conservatism, disagreement remains about what economic demands lead to financial reporting conservatism. Research examining lenders' demands for reporting conservatism has been questioned for ignoring conservative contract modifications."
"We document that these modifications exist but are not ubiquitous. We find contract modifications are more likely when agency costs are higher and litigation, tax and equity demands for conservatism are lower," wrote A. Beatty and colleagues.
The researchers concluded: "However, we find a...
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Source: Investment Business Weekly (2008-09-07)