Öz
An extensive review of literature focusing on theoretical and analytical studies reveals that equity
markets will benefit from accounting conservatism due to the increase in overall information
quality. Conditional conservatism, which is evaluated as to the asymmetry between the impact of
good and bad news on earnings, is regarded to be a substitute of discretionary disclosure. Therefore,
as the firms increase the extent of their voluntary disclosures, the cost of raising capital is alleviated
since this cost depends on how much information is attained by the firms’ potential investors.
This study conducts a two stage analysis on a data set of nonfinancial firms listed on Borsa Istanbul
2005-2014, inclusive. Accordingly, the existence of conditional conservatism is tested by using
cross-sectional regression based on the asymmetric timeliness model developed by Basu (1997)
modified by Khan and Watts (2009). Consequently, the resulting firm-year measure of conditional
conservatism is used as the explanatory variable of the panel data analysis. The originality of the paper
stems from the fact that it attempts to provide evidence on the economic consequences of discretionary
accounting practices from Turkey in this specific strand of literature related to the equity
investors’ required rates of return.
Anahtar Kelimeler
Conditional Conservatism Emerging Markets Cost Of Equity Capital Cross-Sectional Analysis
Kaynakça
- Zhang, J. (2008). The Contracting Benefits of Accounting Conservatism to Lenders and Borrowers, Journal of Accounting and Economics, 45.1, 27-54.
Ayrıntılar
| Bölüm | Eski Sayılar |
|---|---|
| Yazarlar | |
| Yayımlanma Tarihi | 28 Temmuz 2017 |
| Yayımlandığı Sayı | Yıl 2017 Cilt: 12 Sayı: 48 |
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Öneri Dergisi
Marmara Üniversitesi Sosyal Bilimler Enstitüsü
Göztepe Kampüsü Enstitüler Binası Kat:5 34722 Kadıköy/İstanbul
e-ISSN: 2147-5377