Product market competition and conditional conservatism

Dan Dhaliwal, Shawn Huang, Inder K. Khurana () and Raynolde Pereira
Additional contact information
Dan Dhaliwal: University of Arizona
Shawn Huang: Arizona State University
Inder K. Khurana: University of Missouri-Columbia
Raynolde Pereira: University of Missouri-Columbia

Review of Accounting Studies, 2014, vol. 19, issue 4, No 2, 1309-1345

Abstract: Abstract Based on pooled cross-sectional analysis, we find a robust positive relation between product market competition and conditional accounting conservatism. We also find evidence of an inter-temporal increase in conditional conservatism following industry deregulation and increased antitrust case filings. Distinguishing further between two dimensions of competition, we find conditional conservatism is greater when there is a higher threat of new entrants as well as stiff existing competition. Moreover, we find these results largely hold for industry followers as opposed to industry leaders, suggesting that strategic considerations shape the extent to which product market competition affects conditional conservatism.

Keywords: Market structure; Firm strategy; Monopoly rents; Political costs (search for similar items in EconPapers)
JEL-codes: D4 L1 M41 (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s11142-013-9267-2 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:reaccs:v:19:y:2014:i:4:d:10.1007_s11142-013-9267-2

Ordering information: This journal article can be ordered from
http://www.springer.com/accounting/journal/11142

DOI: 10.1007/s11142-013-9267-2

Access Statistics for this article

Review of Accounting Studies is currently edited by Paul Fischer

More articles in Review of Accounting Studies from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().