S-Space College of Business Administration/Business School (경영대학/대학원) Dept. of Business Administration (경영학과) Theses (Master's Degree_경영학과)
Why has Financial Reporting Become More Conservative over Time?
- 경영대학 경영학과
- Issue Date
- 서울대학교 대학원
- accounting conservatism; accounting standard; demand for conservatism; regulation; economic environment
- 학위논문 (석사)-- 서울대학교 대학원 : 경영학과, 2015. 2. 황이석.
- Accounting conservatism has significantly increased over the last several decades, but little is known about causes for these changes. I find that the overall increase in conservatism is largely driven by a subset of young firms rather than old firms in the firm population. I then examine whether the different conservatism trends between old and young firms are due to changes in accounting standards, changes in demand for conservatism, or changes in firm’s economic environments. My evidence suggests that the adoption of new accounting standards is responsible for changes in conservatism as most prior studies expect, but changes in demand for conservatism driven by the passage of regulations also play an important role in explaining conservatism trends. In contrast, changes in economic environments seem to have had little effect on conservatism.