| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5086771 | Journal of Accounting and Economics | 2012 | 15 Pages |
Abstract
⺠Researchers have challenged the reliability of Basu's (1997) measure of conservatism. ⺠We investigate this issue using a sample of 2132 companies that overstate earnings. ⺠Basu's metric detects differences in conservatism surrounding corrections of overstatements. ⺠Increases in conservatism following restatements are contingent on improvements in governance. ⺠These results provide evidence of the usefulness of the Basu-based metric in our setting.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Accounting
Authors
Michael Ettredge, Ying Huang, Weining Zhang,