Accounting Conservatism and Risk Culture

Enterprise Risk Management (ERM) is an effective technique in managing risk within an organization strategically and holistically. Risk culture relates to the general awareness, attitudes and behaviours towards risk management in an organisation. This paper presents a conceptual model that shows the relationship between risk culture and ERM implementation. The dependent variable is ERM implementation, which is measured by the four processes namely risk identification and risk assessment; risk treatment; monitor and consult; communicate and consult. The independent variables under risk culture are risk policy and risk appetite; key risk indicators; accountability; incentives; risk language and internal relationships. This study aims to empirically test the relationship between risk culture and ERM implementation among Malaysian construction public listed companies. Risk culture is expected to have direct effects and significantly influence ERM. This study contributes to enhance the body of knowledge in ERM especially in understanding significant of risk culture that influence its’ implementation from Malaysian perspective.

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The Effect of Accounting Conservatism on Credit Ratings and Cost of Debts－Empirical Evidence for Listed Firms and Non－listed Firms－

Journal of Taxation and Accounting ◽

10.35850/kjta.18.6.01 ◽

2017 ◽

Vol 18 (6) ◽

pp. 9-51

Author(s):

Sangmin Jung ◽

Jong－Il Park

Keyword(s):

Empirical Evidence ◽

Credit Ratings ◽

Accounting Conservatism ◽

Listed Firms

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METHODS ASSESSMENT QUALITY OF ACCOUNTING REPORTING AND MODELS OF THEIR MEASUREMENT

EKONOMIKA I UPRAVLENIE: PROBLEMY, RESHENIYA ◽

10.36871/ek.up.p.r.2020.03.03.018 ◽

2020 ◽

Vol 3 (3) ◽

pp. 95-99

Author(s):

E. H. ABU ◽

Keyword(s):

Internal Control ◽

Stock Prices ◽

Control Method ◽

Financial Statements ◽

Accounting Conservatism ◽

Standardized Assessment ◽

Accrual Quality ◽

Indirect Measures

The article explores individual approaches used to measure and evaluate the quality of financial state-ments: standardized assessment, accrual-based models (accrual quality), Beneise models (M-Score), in-dexes - the internal control method and the degree of accounting conservatism. The reason for the great dependence on the use of indirect measures (proxies for the quality of financial statements or stock prices) is that some of the qualities of financial statements are unobservable.

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PENGARUH KONSERVATISMA AKUNTANSI TERHADAP EARNINGS RESPONSE COEFFICIENT (ERC) DENGAN CORPORATE GOVERNANCE SEBAGAI VARIABEL PEMODERASI

Jurnal Kajian Akuntansi dan Auditing ◽

10.37301/jkaa.v0i0.6485 ◽

2008 ◽

Author(s):

Olliza Mayesti ◽

Resti Yulistia Muslim

Keyword(s):

Corporate Governance ◽

Stock Exchange ◽

Negative Influence ◽

Accounting Conservatism ◽

Managerial Ownership ◽

Net Income ◽

Manufacturing Companies ◽

Earnings Response Coefficient ◽

Response Coefficient ◽

Earnings Response

The objective of this study is to examine whether corporate governance influence the relation between accounting conservatism and Earnings Response Coefficient (ERC). The accounting conservatism proxy used in this research is accruals obtained from differences between net income and cash flow. Sample consists of 31 manufacturing companies that listed in Indonesian Stock Exchange since 20032006. Hypotheses are examined by using multiple regressions. The result shows that there is a negative influence of accounting conservatism to Earnings Response Coefficient. Managerial ownership as a moderating variable did not affect the relation between accounting conservatism and Earnings Response Coefficient, but independent board of commissioner composition as a moderating variable affected the relation between accounting conservatism and Earnings Response Coefficient.

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