Conservatism, Earnings Management and R&D Capitalization

Han Li

International Journal of Financial Research, 2019, vol. 10, issue 2, 52-60

Abstract: This paper sheds light on the relationship between accounting conservatism and earnings management. It finds that accounting conservatism is negatively associated with real earnings management. Furthermore, it also tests that accounting conservatism has an effect that it can restrict on the innovation inputs which is measured by the extent of capitalized R&D. This effect of negative relationship between accounting conservatism and earnings management would increase under the situation that the firms have higher level of financial leverage.

Keywords: accounting conservatism; earnings management; R&D; innovation; capitalization (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciedu.ca/journal/index.php/ijfr/article/view/14924/9408 (application/pdf)
http://www.sciedu.ca/journal/index.php/ijfr/article/view/14924 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:jfr:ijfr11:v:10:y:2019:i:2:p:52-60

DOI: 10.5430/ijfr.v10n2p52

Access Statistics for this article

International Journal of Financial Research is currently edited by Gina Perry

More articles in International Journal of Financial Research from International Journal of Financial Research, Sciedu Press
Bibliographic data for series maintained by Gina Perry ().