Identifying Accounting Conservatism in the Presence of Skewness

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dc.contributorAalto-yliopistofi
dc.contributorAalto Universityen
dc.contributor.authorJarva, Henryen_US
dc.contributor.authorLof, Matthijsen_US
dc.contributor.departmentDepartment of Accountingen_US
dc.contributor.departmentDepartment of Financeen_US
dc.date.accessioned2021-03-22T07:09:28Z
dc.date.available2021-03-22T07:09:28Z
dc.date.issued2018en_US
dc.description.abstractWe demonstrate analytically and by simulation that the asymmetric timeliness (AT) coefficient in the Basu (1997) model is not a reliable measure of accounting conservatism in the presence of skewness. Specifically, a significant AT coefficient arises mechanically as a consequence of skewness in returns and/or earnings. The implication of this result is that variation in AT estimates between groups reflect variation in conditional conservatism only under conditions that are rarely met in practice. We propose an alternative approach to identify conditional conservatism based on asymmetry in the conditional probability of accrual write-offs.en
dc.description.versionPeer revieweden
dc.format.extent41
dc.format.mimetypeapplication/pdfen_US
dc.identifier.citationJarva , H & Lof , M 2018 , Identifying Accounting Conservatism in the Presence of Skewness . in 100th Anniversary Accounting Conference Final Papers . SSRN Electronic Journal , no. 1 , vol. 2018 , Temple University , Anniversary Accounting Conference , Philadelphia , Pennsylvania , United States , 09/08/2018 . https://doi.org/10.2139/ssrn.3151365en
dc.identifier.doi10.2139/ssrn.3151365en_US
dc.identifier.issn1556-5068
dc.identifier.otherPURE UUID: 8b1127c2-318b-4ef9-95e4-309baeb229eaen_US
dc.identifier.otherPURE ITEMURL: https://research.aalto.fi/en/publications/8b1127c2-318b-4ef9-95e4-309baeb229eaen_US
dc.identifier.otherPURE FILEURL: https://research.aalto.fi/files/56887482/SSRN_id3151365.pdfen_US
dc.identifier.urihttps://aaltodoc.aalto.fi/handle/123456789/103236
dc.identifier.urnURN:NBN:fi:aalto-202103222514
dc.language.isoenen
dc.publisherSSRN
dc.relation.ispartofAnniversary Accounting Conferenceen
dc.relation.ispartofseries100th Anniversary Accounting Conference Final Papersen
dc.relation.ispartofseriesSSRN Electronic Journalen
dc.relation.ispartofseriesVolume 2018, issue 1en
dc.rightsopenAccessen
dc.subject.keywordconditional conservatismen_US
dc.subject.keywordasymmetric timelinessen_US
dc.subject.keywordearnings-return relationen_US
dc.subject.keywordaccrualsen_US
dc.subject.keywordwrite-offsen_US
dc.titleIdentifying Accounting Conservatism in the Presence of Skewnessen
dc.typeConference article in proceedingsfi
dc.type.versionpublishedVersion
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