Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
1005154 | The International Journal of Accounting | 2010 | 25 Pages |
Abstract
Following LaFond and Watts (2008), we examine the relation between information asymmetry (as measured by PIN, probability of information-based trading) and accounting conservatism but focus on a country – Taiwan – whose institutional background is different from that of the United States. Due to the disparate degree of conservatism across the world, the conclusions of LaFond & Watts (2008) might not be universally applicable. Our findings support, in general, the applicability of their conclusion to a Taiwan data set. We find, however, that the effect of PIN appears weaker when auditor tenure is taken into account, thus supplementing their conclusions.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Accounting
Authors
Wuchun Chi, Chenchin Wang,