unexpected annual show a marked stock returns to proxy tendency to reverse. for bad news and good The conclusion of news. For the other this paper is that three predictions earnings are S.Basu used empirical timelier in reporting tests. publicly available bad news about future cash flows than good news. 4 Discussion of Sudipta Basu Further This is a discussion paper In this article Basu Because this is a “Conditional and 2005 investigation of a about conservatism that further react to a discussion we will Unconditional model of Beaver investigates a previous previous test model of give a brief Conservatism: and Ryan. Basu model of Beaver and Ryan. Beaver and Ryan. They summary: Basu Concepts and takes this model as No test information is model, simulate and extends the model of Modeling” a basis to give an included. 2005 graph the effects of Beaver and Ryan answer on the various factors on the and says that in the research question: nonlinear future researchers Why unconditional relation induced should carefully and conditional by conditional consider the conservatism are conservatism. They frictions between more than mere integrated in their actual accounting substitutes, and model two separate practice and provide evidence algebraic analyses of previous simple from the historical unconditional and theoretical models. record. conditional He stated that conservatism. (e.g. application of Beaver and Ryan, 11; nonlinear Ryan and Zarowin, 38) estimation They made use of techniques is likely Monte Carlo analyses to improve the
unexpected annual stock returns to proxy for bad news and good news. For the other three predictions S.Basu used empirical tests. show a marked tendency to reverse. The conclusion of this paper is that earnings are timelier in reporting publicly available bad news about future cash flows than good news. 4 Discussion of “Conditional and Unconditional Conservatism: Concepts and Modeling” Sudipta Basu 2005 Further investigation of a model of Beaver and Ryan. Basu takes this model as a basis to give an answer on the research question: Why unconditional and conditional conservatism are more than mere substitutes, and provide evidence from the historical record. This is a discussion paper about conservatism that investigates a previous model of Beaver and Ryan. No test information is included. 2005 In this article Basu further react to a previous test model of Beaver and Ryan. They model, simulate and graph the effects of various factors on the nonlinear relation induced by conditional conservatism. They integrated in their model two separate algebraic analyses of unconditional and conditional conservatism. (e.g. Beaver and Ryan, 11; Ryan and Zarowin, 38) They made use of Monte Carlo analyses Because this is a discussion we will give a brief summary: Basu extends the model of Beaver and Ryan and says that in the future researchers should carefully consider the frictions between actual accounting practice and previous simple theoretical models. He stated that application of nonlinear estimation techniques is likely to improve the