Accounting conservatism: A literature review
Date Published:
25/03/2025
Online Published:
25/03/2025
Section:
Finance, Banking, Accounting, and Auditing
Main Article Content
Abstract
Accounting conservatism reduces information imbalances in the accounting information system between people within the unit and information users outside the unit, reducing the ability to manage key custom reporting accounts (LaFond & Watts, 2008) and is a key determinant of financial reporting quality (DeFond & Zhang, 2014). Meanwhile, globalization and the internationalization of capital markets require very high transparency, timely response to financial reports, and the quality of main financial reports. Therefore, this study was conducted to provide an overview of prudential accounting in terms of definition, classification of prudential accounting, measurement methods, and important factors affecting prudential accounting. The results of this study have provided the most general theoretical foundation for prudential accounting, which is the basis for future research on this issue and at the same time provides a theoretical foundation to support readers gaining a comprehensive view of prudential accounting as well as its role in financial reporting quality to build appropriate research directions in the future.
Keywords
Accounting conservatism; Measurement method; The role of accounting conservatism
Article Details
Field of Economic (JEL Codes)
M40 - General - M41 - Accounting - Accounting and Auditing
References
Ahmed, A.S. & Duellman, S. (2007). Accounting conservatism and board of director characteristics: An empirical analysis. Journal of Accounting and Economics, 43(2-3), 411-437. https://doi.org/10.1016/j.jacceco.2007.01.005
Ahmed, A. S., Billings, B. K., Morton, R. M., & Stanford‐Harris, M. (2002). The role of accounting conservatism in mitigating bondholders-shareholder conflicts over dividend policy and in reducing debt costs. The Accounting Review, 77(4), 867-890. https://doi.org/10.2308/accr.2002.77.4.867
Ahmed, A.S. & Duellman, S. (2010). Evidence on the role of accounting conservatism in monitoring managers’ investment decisions. Accounting & Finance, 51(3), 609-633. https://doi.org/10.2139/ssrn.1012347
Aier, J. K., Chen, L. & Pevzner, M. (2014). Debtholders’ demand for conservatism: evidence from changes in directors’ fiduciary duties. Journal of Accounting Research, 52(5), 993-1027. https://doi.org/10.1111/1475-679X.12062
Al Jaloudi, O. H. (2018). The impact of conservatism policy on reporting quality on Jordanian banking sector. Journal of Finance and Accounting, 6(3), 91-95.
https://doi.org/10.11648/j.jfa.20180603.12
Ball, R., Robin, A., & Wu, J. S. (2003). Incentives versus standards: properties of accounting income in four East Asian countries. Journal of Accounting and Economics, 36(1-3), 235-270. https://doi.org/10.1016/j.jacceco.2003.10.003
Ball, R. & Shivakumar, L. (2006). The role of Accruals in Asymmetrically timely gain and loss recognition. Journal of Accounting Research, 44(2), 207-242. https://doi.org/10.1111/j.1475-679X.2006.00198.x
Basu, S. (1997). The conservatism principle and the asymmetric timeliness of earnings. Journal of Accounting and Economics, 24(1), 3-37. https://doi.org/10.1016/S0165-4101(97)00014-1
Beatty, A., Weber, J. & Yu, J. J. (2008). Conservatism and debt. Journal of Accounting and Economics, 45(2-3), 154-174. https://doi.org/10.1016/j.jacceco.2008.04.005
Beaver, W.H., & Ryan, S.G. (2000). Biases and lags in book value and their effects on the ability of the book-to-market ratio to predict book return on equity. Journal of Accounting Research, 38(1), 127-148. https://doi.org/10.2307/2672925
Beaver, W. H. & Ryan, S. G. (2005). Conditional and unconditional conservatism: Concepts and modeling. Review of Accounting Studies, 10, 269-309. https://doi.org/10.1007/s11142-005-1532-6
Beekes, W., Pope, P. & Young, S. (2004). The link between earnings timeliness, earnings conservatism and Board composition: evidence from the UK. Corporate Governance: An International Review, 12(1), 47-59. https://doi.org/10.1111/j.1467-8683.2004.00342.x
Belkaoui, A. (1985). Accounting theory (2nd ed.). Harcourt Brace Jovanovich.
Bliss, J. H. (1924). Management through accounts. The Ronald Press. https://babel.hathitrust.org/cgi/pt?id=wu.89097131643&seq=13
Chandra, U. (2011). Income conservatism in the US technology Sector. Accounting Horizons, 25(2), 285-314. http://dx.doi.org/10.2139/ssrn.485064
Chen, L. H., Folsom, D. M., Peak, W., & Sami, H. (2014). Accounting conservatism, earnings persistence, and pricing multiples on earnings. Accounting Horizons, 28(2), 233-260. https://doi.org/10.2308/acch-50664
Collins, D. W., Maydew, E. L., & Weiss, I. S. (1997). Changes in the value-relevance of earnings and book values over the past forty years. Journal of Accounting and Economics, 24(1), 39-67. https://doi.org/10.1016/S0165-4101(97)00015-3
Devine, C. T. (1963). The rule of conservatism reexamined. Journal of Accounting Research, 1(2), 127-138. https://doi.org/10.2307/2489851
Dechow, P., Ge, W., & Schrand, C. (2010). Understanding earnings quality: A review of the proxies, their determinants and their consequences. Journal of Accounting and Economics, 50(2-3), 344-401. https://doi.org/10.1016/j.jacceco.2010.09.001
Desyana, G. (2022). Faktor determinan pemilihan konservatisme akuntansi (studi kasus pada sektor industri barang konsumsi yang terdaftar di bei). Jurnal Audit dan Akuntansi Fakultas Ekonomi Universitas Tanjungpura, 11(1), 59-72. https://doi.org/10.26418/jaakfe.v11i1.55201
DeFond, M., & Zhang, J. (2014). A review of archival auditing research. Journal of Accounting and Economics, 58(2-3), 275-326. https://doi.org/10.1016/j.jacceco.2014.09.002
Feltham, G.A., & Ohlson, J.A. (1995). Valuation and clean surplus accounting for operating and financial activities. Contemporary Accounting Research, 11(2), 689-731. https://doi.org/10.1111/j.1911-3846.1995.tb00462.x
Financial Accounting Standards Board (FASB) (2010). Statement of Financial Accounting Concepts No.8, Conceptual framework for financial reporting. Norwalk, CT: FASB.
Francis, B., Hasan, I., & Wu, Q. (2013). The benefits of conservative accounting to shareholders: evidence from the financial crisis. Accounting Horizons, 27(2), 319-346. https://doi.org/10.2308/acch-50431
Francis, J. R., & Martin, X. (2010). Acquisition profitability and timely loss recognition. Journal of Accounting and Economics, 49(1-2), 161-178. https://doi.org/10.1016/j.jacceco.2009.09.003
García Lara, J. M., García Osma, B., & Penalva, F. (2009). Accounting conservatism and corporate governance. Review of Accounting Studies, 14, 161-201. https://doi.org/10.1007/s11142-007-9060-1
Gigler, F., Kanodia, C., Sapra, H., & Venugopalan, R. (2009). Accounting conservatism and the efficiency of debt contracts. Journal of Accounting Research, 47(3), 767-797. https://www.jstor.org/stable/25548040
Givoly, D. & Hayn, C. (2000). The changing time-series properties of earnings, cash flows and accruals. Journal of Accounting and Economics, 29(3), 287-320. https://doi.org/10.1016/S0165-4101(00)00024-0
Guay, W., & Verrecchia, R. (2006). Discussion of an economic framework for conservative accounting and Bushman and Piotroski (2006). Journal of Accounting and Economics, 42(1-2), 149-165. https://doi.org/10.1016/j.jacceco.2006.03.003
Hejranijamil, M., Hejranijamil, A., & Shekarkhah, J. (2020). Accounting conservatism and uncertainty in business enviroments: Using financial data of listed companies in the Tehran stock exchange. Asian Journal of Accounting Research, 5(2), 179-194. https://doi.org/10.1108/ajar-04-2020-0027
Hendriksen, E. S. (1982). Accounting theory (4th ed.). R.D. IrWin. https://www.caluniv.ac.in/academic/Commerce/Study/Sem-II-CC-205-AT.pdf
Holthausen, R. W. & Watts, R. L. (2001). The relevance of the value relevance literature for financial accounting standard setting. Journal of Accounting and Economics, 31(1-3), 3-75. https://doi.org/10.1016/S0165-4101(01)00029-5
Hui, K. W., Matsunaga, S. & Morse, D. (2009). The impact of conservatism on Management earnings forecasts. Journal of Accounting and Economics, 47(3), 192-207. https://doi.org/10.1016/j.jacceco.2009.01.001
Indarti, M. G. K., Widiatmoko, J., Badjuri, A., & Ambarwati, T. (2021) Determinan konservatisme akuntansi: Studi empiris pada perusahaan manufaktur di bursa efek Indonesia. Jurnal Akuntansi Indonesia, 10(2), 161-174. http://dx.doi.org/10.30659/jai.10.2.161-174
International Accounting Standards Board (IASB) (2008). An improved conceptual framework for financial reporting. https://www.ifrs.org/content/dam/ifrs/project/conceptual-framework-2010/conceptual-framework-exposure-draft.pdf
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: managerial behavior, agency costs and ownership structure. Journal of financial economics, 3(4), 305-360. https://doi.org/10.1016/0304-405X(76)90026-X
Kabir, M. H. & Laswad, F. (2014). The behaviour of earnings, accruals and impairment losses of failed New Zealand Finance companies. Australian Accounting Review, 24(3), 262-275. https://doi.org/10.1111/auar.12028
Kim, Y., Li, S., Pan, C., & Zuo, L. (2013). The role of accounting conservatism in the equity market: Evidence from seasoned equity offerings. The Accounting Review, 88(4), 1327-1356. https://www.jstor.org/stable/23525980
Kothari, S. P., Shu, S., & Wysocki, P. D. (2009). Do managers withhold bad news?. Journal of Accounting Research, 47(1), 241-276. https://doi.org/10.1111/j.1475-679X.2008.00318.x
Krismiaji, K., & Sururi, S., (2021). Conservatism, earnings quality, and stock prices - Indonesian evidence. Journal of Accounting and Investment, 22(1), 37-50. https://doi.org/10.18196/jai.v22i1.9419
Lafond, R. & Roychowdhury, S. (2008). Managerial ownership and accounting conservatism. Journal of Accounting Research, 46(1), 101-135. https://doi.org/10.1111/j.1475-679X.2008.00268.x
Lafond, R. & Watts, R. L. (2008). The information role of conservatism. The Accounting Review, 83(2), 447-478. https://www.jstor.org/stable/30245364
Lev, B., & Zarowin, P. (1999). The boundaries of financial reporting and how to extend them. Journal of Accounting Research, 37(2), 353-385. https://doi.org/10.2307/2491413
Louis, H., Sun, A. X., & Urcan, O. (2012). Value of cash holdings and accounting conservatism. Contemporary Accounting Research, 29(4), 1249-1271. https://doi.org/10.1111/j.1911-3846.2011.01149.x
Neag, R., & Maşca, E. (2015). Identifying accounting conservatism–a literature review. Procedia Economics and Finance, 32, 1114-1121. https://doi.org/10.1016/S2212-5671(15)01576-2
Nikolaev, V. V. (2010). Debt convenants and accounting conservatism. Journal of Accounting Research, 48(1), 137-175. https://www.jstor.org/stable/40389244
Nur, M., Molina, M., Indriyanto, E., & Digdowiseiso, K. (2023). Determinants of the selection of accounting conservatism in Indonesia: a systematic literature review approach. Global Journal of Business, Economics & Social Development, 1(2), 64-77. https://doi.org/10.56225/gjbesd.v1i2.9
Palmrose, Z.-V., & Scholz, S. (2000). Restated financial statements and auditor litigation. http://dx.doi.org/10.2139/ssrn.248455
Qiang, X. (2007). The effects of contracting, litigation, regulation, and tax cost on conditional and unconditional conservatism: Cross-sectional evidence at the firm level. The Accounting Review, 82(3), 759-796. https://www.jstor.org/stable/30243796
Ruch, G. W., & Taylor, G. (2015). Accounting conservatism: A review of literature. Journal of Accounting Literature, 34(1), 17-38. https://doi.org/10.1016/j.acclit.2015.02.001
Setiadi, I., Nurwati, N., & Widodo, W. (2023). Determinan konservatisme akuntansi perusahaan manufaktu di Indoniesia. Jurnal Riset Akuntansi Mercu Buana, 9(1), 63-71. https://doi.org/10.26486/jramb.v9i1.3219
Song, F. (2015) Ownership structure and accounting conservatism: A literature Review. Modern Economy, 6(4), 478-483. https://doi.org/10.4236/me.2015.64046
Soyemi, K. A., Olufemi, O. A., & Adeyemi, S. B. (2020). External audit(or) quality and accrual earnings management: Further evidence from Nigeria. Malaysian Management Journal, 24, 31-56. https://doi.org/10.32890/mmj.24.2020.10322
Sterling, R. R. (1970). The theory of the measurement of enterprise income. University Press of Kansas.
Sun, J., & Liu, G. (2011). The effect of analyst coverage on accounting conservatism. Managerial Finance, 37(1), 5-20. https://doi.org/10.1108/03074351111092111
Tan, L. (2013). Creditor control rights, state of nature verification, and financial reporting conservatism. Journal of Accounting and Economics, 55(1), 1-22. https://doi.org/10.1016/j.jacceco.2012.08.001
Watts, R. L. (2003). Conservatism in accounting part I: Explanations and implications. Accounting Horizons, 17(3), 207-221. https://doi.org/10.2308/acch.2003.17.3.207
Watts, R. L. & Zimmerman, J. L. (1986). Positive Accounting Theory. Prentice-Hall. https://ssrn.com/abstract=928677
Wittenberg-Moerman, R. (2008). The role of information asymmetry and financial reporting quality in debt trading: evidence from the secondary loan market. Journal of Accounting and Economics, 46(2-3), 240-260. https://doi.org/10.1016/j.jacceco.2008.08.001
Zhang, J. (2008). The contracting benefits of accounting conservatism to lenders and borrowers. Journal of Accounting and Economics, 45(1), 27-54. https://doi.org/10.1016/j.jacceco.2007.06.002
Zhong, Y., & Li, W. (2017). Accounting conservatism: A literature review. Australian Accounting Review, 27(2), 195-213. https://doi.org/10.1111/auar.12107
Ahmed, A. S., Billings, B. K., Morton, R. M., & Stanford‐Harris, M. (2002). The role of accounting conservatism in mitigating bondholders-shareholder conflicts over dividend policy and in reducing debt costs. The Accounting Review, 77(4), 867-890. https://doi.org/10.2308/accr.2002.77.4.867
Ahmed, A.S. & Duellman, S. (2010). Evidence on the role of accounting conservatism in monitoring managers’ investment decisions. Accounting & Finance, 51(3), 609-633. https://doi.org/10.2139/ssrn.1012347
Aier, J. K., Chen, L. & Pevzner, M. (2014). Debtholders’ demand for conservatism: evidence from changes in directors’ fiduciary duties. Journal of Accounting Research, 52(5), 993-1027. https://doi.org/10.1111/1475-679X.12062
Al Jaloudi, O. H. (2018). The impact of conservatism policy on reporting quality on Jordanian banking sector. Journal of Finance and Accounting, 6(3), 91-95.
https://doi.org/10.11648/j.jfa.20180603.12
Ball, R., Robin, A., & Wu, J. S. (2003). Incentives versus standards: properties of accounting income in four East Asian countries. Journal of Accounting and Economics, 36(1-3), 235-270. https://doi.org/10.1016/j.jacceco.2003.10.003
Ball, R. & Shivakumar, L. (2006). The role of Accruals in Asymmetrically timely gain and loss recognition. Journal of Accounting Research, 44(2), 207-242. https://doi.org/10.1111/j.1475-679X.2006.00198.x
Basu, S. (1997). The conservatism principle and the asymmetric timeliness of earnings. Journal of Accounting and Economics, 24(1), 3-37. https://doi.org/10.1016/S0165-4101(97)00014-1
Beatty, A., Weber, J. & Yu, J. J. (2008). Conservatism and debt. Journal of Accounting and Economics, 45(2-3), 154-174. https://doi.org/10.1016/j.jacceco.2008.04.005
Beaver, W.H., & Ryan, S.G. (2000). Biases and lags in book value and their effects on the ability of the book-to-market ratio to predict book return on equity. Journal of Accounting Research, 38(1), 127-148. https://doi.org/10.2307/2672925
Beaver, W. H. & Ryan, S. G. (2005). Conditional and unconditional conservatism: Concepts and modeling. Review of Accounting Studies, 10, 269-309. https://doi.org/10.1007/s11142-005-1532-6
Beekes, W., Pope, P. & Young, S. (2004). The link between earnings timeliness, earnings conservatism and Board composition: evidence from the UK. Corporate Governance: An International Review, 12(1), 47-59. https://doi.org/10.1111/j.1467-8683.2004.00342.x
Belkaoui, A. (1985). Accounting theory (2nd ed.). Harcourt Brace Jovanovich.
Bliss, J. H. (1924). Management through accounts. The Ronald Press. https://babel.hathitrust.org/cgi/pt?id=wu.89097131643&seq=13
Chandra, U. (2011). Income conservatism in the US technology Sector. Accounting Horizons, 25(2), 285-314. http://dx.doi.org/10.2139/ssrn.485064
Chen, L. H., Folsom, D. M., Peak, W., & Sami, H. (2014). Accounting conservatism, earnings persistence, and pricing multiples on earnings. Accounting Horizons, 28(2), 233-260. https://doi.org/10.2308/acch-50664
Collins, D. W., Maydew, E. L., & Weiss, I. S. (1997). Changes in the value-relevance of earnings and book values over the past forty years. Journal of Accounting and Economics, 24(1), 39-67. https://doi.org/10.1016/S0165-4101(97)00015-3
Devine, C. T. (1963). The rule of conservatism reexamined. Journal of Accounting Research, 1(2), 127-138. https://doi.org/10.2307/2489851
Dechow, P., Ge, W., & Schrand, C. (2010). Understanding earnings quality: A review of the proxies, their determinants and their consequences. Journal of Accounting and Economics, 50(2-3), 344-401. https://doi.org/10.1016/j.jacceco.2010.09.001
Desyana, G. (2022). Faktor determinan pemilihan konservatisme akuntansi (studi kasus pada sektor industri barang konsumsi yang terdaftar di bei). Jurnal Audit dan Akuntansi Fakultas Ekonomi Universitas Tanjungpura, 11(1), 59-72. https://doi.org/10.26418/jaakfe.v11i1.55201
DeFond, M., & Zhang, J. (2014). A review of archival auditing research. Journal of Accounting and Economics, 58(2-3), 275-326. https://doi.org/10.1016/j.jacceco.2014.09.002
Feltham, G.A., & Ohlson, J.A. (1995). Valuation and clean surplus accounting for operating and financial activities. Contemporary Accounting Research, 11(2), 689-731. https://doi.org/10.1111/j.1911-3846.1995.tb00462.x
Financial Accounting Standards Board (FASB) (2010). Statement of Financial Accounting Concepts No.8, Conceptual framework for financial reporting. Norwalk, CT: FASB.
Francis, B., Hasan, I., & Wu, Q. (2013). The benefits of conservative accounting to shareholders: evidence from the financial crisis. Accounting Horizons, 27(2), 319-346. https://doi.org/10.2308/acch-50431
Francis, J. R., & Martin, X. (2010). Acquisition profitability and timely loss recognition. Journal of Accounting and Economics, 49(1-2), 161-178. https://doi.org/10.1016/j.jacceco.2009.09.003
García Lara, J. M., García Osma, B., & Penalva, F. (2009). Accounting conservatism and corporate governance. Review of Accounting Studies, 14, 161-201. https://doi.org/10.1007/s11142-007-9060-1
Gigler, F., Kanodia, C., Sapra, H., & Venugopalan, R. (2009). Accounting conservatism and the efficiency of debt contracts. Journal of Accounting Research, 47(3), 767-797. https://www.jstor.org/stable/25548040
Givoly, D. & Hayn, C. (2000). The changing time-series properties of earnings, cash flows and accruals. Journal of Accounting and Economics, 29(3), 287-320. https://doi.org/10.1016/S0165-4101(00)00024-0
Guay, W., & Verrecchia, R. (2006). Discussion of an economic framework for conservative accounting and Bushman and Piotroski (2006). Journal of Accounting and Economics, 42(1-2), 149-165. https://doi.org/10.1016/j.jacceco.2006.03.003
Hejranijamil, M., Hejranijamil, A., & Shekarkhah, J. (2020). Accounting conservatism and uncertainty in business enviroments: Using financial data of listed companies in the Tehran stock exchange. Asian Journal of Accounting Research, 5(2), 179-194. https://doi.org/10.1108/ajar-04-2020-0027
Hendriksen, E. S. (1982). Accounting theory (4th ed.). R.D. IrWin. https://www.caluniv.ac.in/academic/Commerce/Study/Sem-II-CC-205-AT.pdf
Holthausen, R. W. & Watts, R. L. (2001). The relevance of the value relevance literature for financial accounting standard setting. Journal of Accounting and Economics, 31(1-3), 3-75. https://doi.org/10.1016/S0165-4101(01)00029-5
Hui, K. W., Matsunaga, S. & Morse, D. (2009). The impact of conservatism on Management earnings forecasts. Journal of Accounting and Economics, 47(3), 192-207. https://doi.org/10.1016/j.jacceco.2009.01.001
Indarti, M. G. K., Widiatmoko, J., Badjuri, A., & Ambarwati, T. (2021) Determinan konservatisme akuntansi: Studi empiris pada perusahaan manufaktur di bursa efek Indonesia. Jurnal Akuntansi Indonesia, 10(2), 161-174. http://dx.doi.org/10.30659/jai.10.2.161-174
International Accounting Standards Board (IASB) (2008). An improved conceptual framework for financial reporting. https://www.ifrs.org/content/dam/ifrs/project/conceptual-framework-2010/conceptual-framework-exposure-draft.pdf
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: managerial behavior, agency costs and ownership structure. Journal of financial economics, 3(4), 305-360. https://doi.org/10.1016/0304-405X(76)90026-X
Kabir, M. H. & Laswad, F. (2014). The behaviour of earnings, accruals and impairment losses of failed New Zealand Finance companies. Australian Accounting Review, 24(3), 262-275. https://doi.org/10.1111/auar.12028
Kim, Y., Li, S., Pan, C., & Zuo, L. (2013). The role of accounting conservatism in the equity market: Evidence from seasoned equity offerings. The Accounting Review, 88(4), 1327-1356. https://www.jstor.org/stable/23525980
Kothari, S. P., Shu, S., & Wysocki, P. D. (2009). Do managers withhold bad news?. Journal of Accounting Research, 47(1), 241-276. https://doi.org/10.1111/j.1475-679X.2008.00318.x
Krismiaji, K., & Sururi, S., (2021). Conservatism, earnings quality, and stock prices - Indonesian evidence. Journal of Accounting and Investment, 22(1), 37-50. https://doi.org/10.18196/jai.v22i1.9419
Lafond, R. & Roychowdhury, S. (2008). Managerial ownership and accounting conservatism. Journal of Accounting Research, 46(1), 101-135. https://doi.org/10.1111/j.1475-679X.2008.00268.x
Lafond, R. & Watts, R. L. (2008). The information role of conservatism. The Accounting Review, 83(2), 447-478. https://www.jstor.org/stable/30245364
Lev, B., & Zarowin, P. (1999). The boundaries of financial reporting and how to extend them. Journal of Accounting Research, 37(2), 353-385. https://doi.org/10.2307/2491413
Louis, H., Sun, A. X., & Urcan, O. (2012). Value of cash holdings and accounting conservatism. Contemporary Accounting Research, 29(4), 1249-1271. https://doi.org/10.1111/j.1911-3846.2011.01149.x
Neag, R., & Maşca, E. (2015). Identifying accounting conservatism–a literature review. Procedia Economics and Finance, 32, 1114-1121. https://doi.org/10.1016/S2212-5671(15)01576-2
Nikolaev, V. V. (2010). Debt convenants and accounting conservatism. Journal of Accounting Research, 48(1), 137-175. https://www.jstor.org/stable/40389244
Nur, M., Molina, M., Indriyanto, E., & Digdowiseiso, K. (2023). Determinants of the selection of accounting conservatism in Indonesia: a systematic literature review approach. Global Journal of Business, Economics & Social Development, 1(2), 64-77. https://doi.org/10.56225/gjbesd.v1i2.9
Palmrose, Z.-V., & Scholz, S. (2000). Restated financial statements and auditor litigation. http://dx.doi.org/10.2139/ssrn.248455
Qiang, X. (2007). The effects of contracting, litigation, regulation, and tax cost on conditional and unconditional conservatism: Cross-sectional evidence at the firm level. The Accounting Review, 82(3), 759-796. https://www.jstor.org/stable/30243796
Ruch, G. W., & Taylor, G. (2015). Accounting conservatism: A review of literature. Journal of Accounting Literature, 34(1), 17-38. https://doi.org/10.1016/j.acclit.2015.02.001
Setiadi, I., Nurwati, N., & Widodo, W. (2023). Determinan konservatisme akuntansi perusahaan manufaktu di Indoniesia. Jurnal Riset Akuntansi Mercu Buana, 9(1), 63-71. https://doi.org/10.26486/jramb.v9i1.3219
Song, F. (2015) Ownership structure and accounting conservatism: A literature Review. Modern Economy, 6(4), 478-483. https://doi.org/10.4236/me.2015.64046
Soyemi, K. A., Olufemi, O. A., & Adeyemi, S. B. (2020). External audit(or) quality and accrual earnings management: Further evidence from Nigeria. Malaysian Management Journal, 24, 31-56. https://doi.org/10.32890/mmj.24.2020.10322
Sterling, R. R. (1970). The theory of the measurement of enterprise income. University Press of Kansas.
Sun, J., & Liu, G. (2011). The effect of analyst coverage on accounting conservatism. Managerial Finance, 37(1), 5-20. https://doi.org/10.1108/03074351111092111
Tan, L. (2013). Creditor control rights, state of nature verification, and financial reporting conservatism. Journal of Accounting and Economics, 55(1), 1-22. https://doi.org/10.1016/j.jacceco.2012.08.001
Watts, R. L. (2003). Conservatism in accounting part I: Explanations and implications. Accounting Horizons, 17(3), 207-221. https://doi.org/10.2308/acch.2003.17.3.207
Watts, R. L. & Zimmerman, J. L. (1986). Positive Accounting Theory. Prentice-Hall. https://ssrn.com/abstract=928677
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How to Cite
Ngo , N. P. D. (2025). Accounting conservatism: A literature review. Journal of Finance - Marketing Research, 3(01), 130-142. https://doi.org/10.52932/jfm.v3i1e.613