Accounting Conservatism The Quality Of Earnings And Stock Returns

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  • Accounting Conservatism The Quality Of Earnings

    Accounting Conservatism, the Quality of Earnings, and Stock Returns It is often claimed that the practice of conservatism in accounting produces higher quality earnings. Conservatism yields lower earnings, it is said, and so prima facie these "conservative" earnings are higher quality..

  • Accounting Conservatism The Quality Of Earnings And

    When a firm practices conservative accounting, changes in the amount of its investments can affect the quality of its earnings. Growth in investment reduces reported earnings and creates reserves. Reducing investment releases those reserves, increasing earnings..

  • Accounting Conservatism The Quality Of Earnings And

    Quality of earnings questions arise when firms that practice conservative accounting change the level of their investment in net operatingets increases in net operatingets create "hidden reserves," depressing earnings, and decreases in investment release hidden reserves into earnings..

  • Accounting Conservatism The Quality Of Earnings

    THE ACCOUNTING REVIEW Vol. , No. pp. Accounting Conservatism, the Quality of Earnings, and Stock Returns Stephen H. Penman.