傳播文獻


【風險與災難傳播】 - 風險治理

名稱
Firm's Uncertainty and Accounting Conservatism
來源
管理學報
作者
Chia-Hung Teng ; Yuan-Moau Lin
年份
2009
資料性質
英文
出版者
社團法人中華民國管理科學學會
出版地
台北
冊數
26卷1期
頁數
P79 - 95
相關連結
簡介
Conservatism is ”a prudent reaction to uncertainty to try to ensure that uncertainty and risks inherent in a business situation are adequately considered (FASB, 1980).” Intuitively, a firm's uncertainty is associated with conservatism. In this paper we investigate the association between a firm's risk and conservatism, by specifically examining whether adopting conservative accounting reduces a firm's uncertainty. We suggest that a high level of conservatism adopted by a firm does not effectively reduce the firm's risk in the following period. Furthermore, we investigate whether over (under) conservatism results in less (more) conservatism in the following period. We obtain strong evidence indicating that conservatism might converge to a long-term mean. Our collective evidence is consistent with the suggestion that the changes in the level of a firm's conservatism adjust with the changes in the firm's uncertainty. An increase in the changes of a firm's uncertainty results in a decrease in the changes of the conservatism level adopted by the firm in the following period. On the other hand, a decrease in the changes of a firm's uncertainty leads to an increase in the changes of the conservatism level adopted by the firm in the following period.