Relationship Between Controlling Shareholders’ Participation in Share Pledging and Accounting Conservatism in China

In this paper, we examined the relationship between controlling shareholders and accounting conservatism in China. Using 5762 firm-years data about listed firms in China stock exchanges from 2001 to 2005, we find that the percentage of the largest shareholder ownership has significantly negative effect on accounting conservatism. After controlled by size, leverage and growth opportunity, the result is still robust. We thus provide evidence of an entrenchment effect, where the largest shareholder may influence firms to adopt aggressive accounting policies that reflect the wishes of the largest shareholder rather than reflect the economic substance of the business transactions.

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Accounting conservatism and the cost of bank credit in Brazil

Brazilian Business Review ◽

10.15728/bbr.2013.10.1.2 ◽

2013 ◽

Vol 10 (1) ◽

pp. 27-48 ◽

Cited By ~ 1

Author(s):

Giovani Antonio Silva Brito ◽

Eliseu Martins

Keyword(s):

Accounting Conservatism ◽

Bank Credit ◽

The Cost

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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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