Accounting conservatism and firm performance during the COVID-19 pandemic
Accounting & Finance
; n/a(n/a), 2021.
Article
in English
| Wiley | ID: covidwho-1109451
ABSTRACT
Abstract We explore whether firms with more conditionally conservative accounting practices have higher stock returns than other firms during the Covid-19 outbreak. We find evidence that Chinese firms listed on the Shanghai and Shenzhen Stock Exchanges applying more conditionally conservative reporting have lower declines in stock return performance during the Covid-19 outbreak relative to other firms. We also find that the beneficial role of conditional conservatism is higher when firms have greater information asymmetry following the Covid-19 pandemic. Our results are robust to various model specifications with four different measures of conservatism and an alternative return window.
Full text:
Available
Collection:
Databases of international organizations
Database:
Wiley
Language:
English
Journal:
Accounting & Finance
Year:
2021
Document Type:
Article
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