(Year) Basu (1997) The Every firm-year The “reverse” Negative conservatism observation regression earnings concept and the between the model that he changes are timeliness and years created timelier but less persistence of persistent, earnings Earnings Response Coefficients (ERCs) are higher for positive earnings changes Basu (1997) The Every firm-year The “reverse” Negative conservatism observation regression earnings concept and the between the model that he changes are timeliness and years created timelier but less persistence of persistent, ERCs earnings are higher for positive earnings changes Francis & Auditors’ 2.068 stock Krishnan’s two Auditors are Krishnan conservatism exchange level and three more likely to (1999) relation with quoted U.S. level probit issue a modified accounting companies model audit opinion accruals (from the years for high-accrual 1986 and 1987) firms and increasing accruals result in higher conservatism Authors (Year) Object Sample Methodology Outcome
(Year) Basu (1997) The conservatism concept and the timeliness and persistence of earnings Every firm-year observation between the years The “reverse” regression model that he created Negative earnings changes are timelier but less persistent, Earnings Response Coefficients (ERCs) are higher for positive earnings changes Basu (1997) The conservatism concept and the timeliness and persistence of earnings Every firm-year observation between the years The “reverse” regression model that he created Negative earnings changes are timelier but less persistent, ERCs are higher for positive earnings changes Francis & Krishnan (1999) Auditors’ conservatism relation with accounting accruals 2.068 stock exchange quoted U.S. companies (from the years 1986 and 1987) Krishnan’s two level and three level probit model Auditors are more likely to issue a modified audit opinion for high-accrual firms and accruals result in higher conservatism Authors (Year) Object Sample Methodology Outcome increasing