Redirigiendo al acceso original de articulo en 21 segundos...
ARTÍCULO
TITULO

Does Accounting Conservatism Reduce Default Risk? Evidence from Taiwan

Chen-Yin Kuo    

Resumen

Differing from existing research focusing on the relations between default risk and equity returns, corporate governance, tax allowance, this paper investigates whether accounting conservatism (accounting conservative reporting) reduces default risk. We adopt Taiwanese high-tech and traditional industries as samples and find that for two industries, a firm that increases more accounting conservatism reduces default risk. This negative effect of accounting conservatism on default risk holds through increasing efficient investments, implying that investments serve as a channel through which conservatism has negative effects on default risk. Efficient investments more strengthen the negative effects in high-tech firms than traditional firms. For risk management practice, a manager can increase conservative accounting reporting to reduce default risk, and thereby improve a firm?s performance, attracting more investors and increasing market capitalization. A suggestion for investors is to invest a firm adopting more accounting conservatism because default risk may be lower.Keywords: Default risk; Accounting conservatism; Efficient investmentsJEL Classifications: C21, C23, D21, G33

 Artículos similares

       
 
Diza Dianeke Budi Prabowo,Dwi Suhartini     Pág. in press
The financial statements must be reliable and become a benchmark in considering an audit decision on the financial statements. In order for this to be achieved, independence and integrity is required in carrying out the audit process. E-Audit helps overc... ver más

 
Cliff Oliver Winoto,Senny Harindahyani     Pág. in press
Audit failure practices have been the headlines in the past decade. At the same time, auditing is associated with high stress and over-timed work. However, a concern regarding the importance of audit quality rises nowadays. This research aims to find the... ver más

 
Desy Khairani, Agus Wahyudin, Amin Pujiati     Pág. 133 - 140
Education is a means to improve the quality of human resources. Good education is the expected to be able to create quality human resources and be able to compete in accordance with the demands of the world of work. Vocational high school (SMK) is a plac... ver más

 
Melinda Lydia Nelwan,Billy Ivan Tansuria     Pág. 85 - 97
This study revisits the effectiveness of the audit committee independence and expertise in preventing earnings management practices.  Studies in other studies with relatively stricter regulations showed the audit committee independence was effective... ver más

 
Daniël Coetsee    
AbstractOrientation: The accounting literature acknowledged that a gap exists between accounting research and accounting practice and supported the argument that accounting research does not significantly contribute to accounting practice.Research purpos... ver más