Relevance of debt- and tax-related motives for conditional conservatism of limited-liability and full-liability firms: evidence from Europe
Author
Abstract
Suggested Citation
DOI: 10.1007/s11573-024-01209-4
Download full text from publisher
As the access to this document is restricted, you may want to search for a different version of it.
References listed on IDEAS
- Ongena, Steven & Tümer-Alkan, Günseli & Westernhagen, Natalja v., 2012.
"Creditor concentration: An empirical investigation,"
European Economic Review, Elsevier, vol. 56(4), pages 830-847.
- Ongena, Steven & Tümer-Alkan, Günseli & von Westernhagen, Natalja, 2007. "Creditor concentration: an empirical investigation," Discussion Paper Series 2: Banking and Financial Studies 2007,15, Deutsche Bundesbank.
- Hannu Ojala & Juha Kinnunen & Lasse Niemi & Pontus Troberg & Jill Collis, 2020. "What Turns the Taxman on? Tax Aggressiveness, Financial Statement Audits, and Tax Return Adjustments in Small Private Companies," The International Journal of Accounting (TIJA), World Scientific Publishing Co. Pte. Ltd., vol. 55(03), pages 1-52, September.
- James J. Heckman & Hidehiko Ichimura & Petra E. Todd, 1997. "Matching As An Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 64(4), pages 605-654.
- Wittenberg-Moerman, Regina, 2008. "The role of information asymmetry and financial reporting quality in debt trading: Evidence from the secondary loan market," Journal of Accounting and Economics, Elsevier, vol. 46(2-3), pages 240-260, December.
- Valeri V. Nikolaev, 2010. "Debt Covenants and Accounting Conservatism," Journal of Accounting Research, Wiley Blackwell, vol. 48(1), pages 137-176, March.
- Anne Tempel & Peter Walgenbach, 2007. "Global Standardization of Organizational Forms and Management Practices? What New Institutionalism and the Business‐Systems Approach Can Learn from Each Other," Journal of Management Studies, Wiley Blackwell, vol. 44(1), pages 1-24, January.
- Bernard, Darren & Burgstahler, David & Kaya, Devrimi, 2018. "Size management by European private firms to minimize proprietary costs of disclosure," Journal of Accounting and Economics, Elsevier, vol. 66(1), pages 94-122.
- Hainmueller, Jens, 2012. "Entropy Balancing for Causal Effects: A Multivariate Reweighting Method to Produce Balanced Samples in Observational Studies," Political Analysis, Cambridge University Press, vol. 20(1), pages 25-46, January.
- Banker, Rajiv D. & Basu, Sudipta & Byzalov, Dmitri & Chen, Janice Y.S., 2016. "The confounding effect of cost stickiness on conservatism estimates," Journal of Accounting and Economics, Elsevier, vol. 61(1), pages 203-220.
- Dietmar Harhoff & Konrad Stahl & Michaerl Woywode, 1998.
"Legal Form, Growth and Exit of West German Firms—Empirical Results for Manufacturing, Construction, Trade and Service Industries,"
Journal of Industrial Economics, Wiley Blackwell, vol. 46(4), pages 453-488, December.
- Harhoff, Dietmar & Stahl, Konrad & Woywode, Michael, 1996. "Legal Form, Growth and Exit of West German Firms - Empirical Results for Manufacturing, Construction, Trade and Service Industries," CEPR Discussion Papers 1401, C.E.P.R. Discussion Papers.
- H. Ojala & J. Kinnunen & L. Niemi & P. Troberg & J. Collis, 2020. "A Reply to the Discussion of “What Turns the Taxman On? Tax Aggressiveness, Financial Statement Audits, and Tax Return Adjustments in Small Private Companies”," The International Journal of Accounting (TIJA), World Scientific Publishing Co. Pte. Ltd., vol. 55(03), pages 1-4, September.
- Hyun A. Hong & Mingyi Hung & Jieying Zhang, 2016. "The Use of Debt Covenants Worldwide: Institutional Determinants and Implications on Financial Reporting," Contemporary Accounting Research, John Wiley & Sons, vol. 33(2), pages 644-681, June.
- Ilia D. Dichev & Douglas J. Skinner, 2002. "Large–Sample Evidence on the Debt Covenant Hypothesis," Journal of Accounting Research, Wiley Blackwell, vol. 40(4), pages 1091-1123, September.
- Jochen Bigus & Nadine Georgiou & Philipp Schorn, 2016. "Legal Form and Earnings Properties," European Accounting Review, Taylor & Francis Journals, vol. 25(3), pages 515-548, September.
- Christof Beuselinck & Ferdinand Elfers & Joachim Gassen & Jochen Pierk, 2023. "Private firm accounting: the European reporting environment, data and research perspectives," Accounting and Business Research, Taylor & Francis Journals, vol. 53(1), pages 38-82, January.
- Stefano Cascino & Mark Clatworthy & Beatriz García Osma & Joachim Gassen & Shahed Imam & Thomas Jeanjean, 2014.
"Who Uses Financial Reports and for What Purpose? Evidence from Capital Providers,"
Accounting in Europe, Taylor & Francis Journals, vol. 11(2), pages 185-209, December.
- Cascino, Stefano & Clatworthy, Mark A. & Osma, Beatriz Garcia & Gassen, Joachim & Imam, Shahed & Jeanjean, Thomas, 2014. "Who uses financial reports and for what purpose? Evidence from capital providers," LSE Research Online Documents on Economics 57683, London School of Economics and Political Science, LSE Library.
- Bornemann, Tobias, 2018. "Tax avoidance and accounting conservatism," arqus Discussion Papers in Quantitative Tax Research 232, arqus - Arbeitskreis Quantitative Steuerlehre.
- Hans B. Christensen & Valeri V. Nikolaev, 2012. "Capital Versus Performance Covenants in Debt Contracts," Journal of Accounting Research, Wiley Blackwell, vol. 50(1), pages 75-116, March.
- Ole-Kristian Hope & Wayne Thomas & Dushyantkumar Vyas, 2011. "Financial credibility, ownership, and financing constraints in private firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 42(7), pages 935-957, September.
- Ball, Ray & Shivakumar, Lakshmanan, 2005. "Earnings quality in UK private firms: comparative loss recognition timeliness," Journal of Accounting and Economics, Elsevier, vol. 39(1), pages 83-128, February.
- Michael Minnis & Nemit Shroff, 2017. "Why regulate private firm disclosure and auditing?," Accounting and Business Research, Taylor & Francis Journals, vol. 47(5), pages 473-502, July.
- Atwood, T.J. & Drake, Michael S. & Myers, Linda A., 2010. "Book-tax conformity, earnings persistence and the association between earnings and future cash flows," Journal of Accounting and Economics, Elsevier, vol. 50(1), pages 111-125, May.
- Valeri V. Nikolaev, 2010. "Debt Covenants and Accounting Conservatism," Journal of Accounting Research, Wiley Blackwell, vol. 48(1), pages 51-89, March.
- Elsas, Ralf, 2005. "Empirical determinants of relationship lending," Journal of Financial Intermediation, Elsevier, vol. 14(1), pages 32-57, January.
- Joachim Gassen & Rolf Uwe Fulbier & Thorsten Sellhorn, 2006. "International Differences in Conditional Conservatism - The Role of Unconditional Conservatism and Income Smoothing," European Accounting Review, Taylor & Francis Journals, vol. 15(4), pages 527-564.
- Vlado Kysucky & Lars Norden, 2016. "The Benefits of Relationship Lending in a Cross-Country Context: A Meta-Analysis," Management Science, INFORMS, vol. 62(1), pages 90-110, January.
- James J. Heckman & Hidehiko Ichimura & Petra Todd, 1998. "Matching As An Econometric Evaluation Estimator," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 65(2), pages 261-294.
- García Lara, Juan Manuel & García Osma, Beatriz & Penalva, Fernando, 2016. "Accounting conservatism and firm investment efficiency," Journal of Accounting and Economics, Elsevier, vol. 61(1), pages 221-238.
- Jean Tirole, 2006. "The Theory of Corporate Finance," Post-Print hal-00173191, HAL.
- repec:bla:jindec:v:46:y:1998:i:4:p:453-88 is not listed on IDEAS
- Bushman, Robert M. & Piotroski, Joseph D., 2006. "Financial reporting incentives for conservative accounting: The influence of legal and political institutions," Journal of Accounting and Economics, Elsevier, vol. 42(1-2), pages 107-148, October.
- Smith, Clifford Jr. & Warner, Jerold B., 1979. "On financial contracting : An analysis of bond covenants," Journal of Financial Economics, Elsevier, vol. 7(2), pages 117-161, June.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
Cited by:
- Wolfgang Breuer & Christian Hofmann, 2025. "Replication studies in finance and accounting," Journal of Business Economics, Springer, vol. 95(2), pages 187-196, April.
Most related items
These are the items that most often cite the same works as this one and are cited by the same works as this one.- Bigus, Jochen & Weicker, Marina, 2024. "Relationship banking and firms’ earnings quality – Does it matter whether banks are creditors or owners?," Journal of Banking & Finance, Elsevier, vol. 159(C).
- Martin Glaum, 2020. "Financial Reporting in Non-listed Family Firms: Insights from Interviews with CFOs," Schmalenbach Business Review, Springer;Schmalenbach-Gesellschaft, vol. 72(2), pages 225-270, April.
- Richard Barker & Anne McGeachin, 2015. "An Analysis of Concepts and Evidence on the Question of Whether IFRS Should be Conservative," Abacus, Accounting Foundation, University of Sydney, vol. 51(2), pages 169-207, June.
- J. Richard Dietrich & Karl A. Muller & Edward J. Riedl, 2023. "On the validity of asymmetric timeliness measures of accounting conservatism," Review of Accounting Studies, Springer, vol. 28(4), pages 2150-2195, December.
- Laux, Christian & Laux, Volker, 2024. "Accounting conservatism and managerial information acquisition," Journal of Accounting and Economics, Elsevier, vol. 77(2).
- Carlo D'Augusta & Matthew D. DeAngelis, 2020. "Does Accounting Conservatism Discipline Qualitative Disclosure? Evidence From Tone Management in the MD&A," Contemporary Accounting Research, John Wiley & Sons, vol. 37(4), pages 2287-2318, December.
- Kim, Jaewoo, 2018. "Asymmetric timely loss recognition, adverse shocks to external capital, and underinvestment: Evidence from the collapse of the junk bond market," Journal of Accounting and Economics, Elsevier, vol. 65(1), pages 148-168.
- Mingzhi Liu & Michel Magnan, 2016. "Conditional conservatism and the yield spread of corporate bond issues," Review of Quantitative Finance and Accounting, Springer, vol. 46(4), pages 847-879, May.
- Ray Ball & Xi Li & Lakshmanan Shivakumar, 2015. "Contractibility and Transparency of Financial Statement Information Prepared Under IFRS: Evidence from Debt Contracts Around IFRS Adoption," Journal of Accounting Research, Wiley Blackwell, vol. 53(5), pages 915-963, December.
- Yuying Xie, 2015. "Confusion over Accounting Conservatism: A Critical Review," Australian Accounting Review, CPA Australia, vol. 25(2), pages 204-216, June.
- Chengru Hu & Wei Jiang, 2019. "Managerial risk incentives and accounting conservatism," Review of Quantitative Finance and Accounting, Springer, vol. 52(3), pages 781-813, April.
- Christensen, Hans B. & Macciocchi, Daniele & Morris, Arthur & Nikolaev, Valeri V., 2022. "Financial shocks to lenders and the composition of financial covenants," Journal of Accounting and Economics, Elsevier, vol. 73(1).
- Li, Keming & Nishikawa, Takeshi & Rao, Ramesh P., 2025. "Does the threat of short selling discipline management? Evidence from default risk changes around regulation SHO," Journal of Financial Markets, Elsevier, vol. 73(C).
- Khalifa, Mariem & Trabelsi, Samir & Matoussi, Hamadi, 2022. "Leverage, R&D expenditures, and accounting conservatism: Evidence from technology firms," The Quarterly Review of Economics and Finance, Elsevier, vol. 84(C), pages 285-304.
- Daher, Mai M. & Ismail, Ahmad K., 2018. "Debt covenants and corporate acquisitions," Journal of Corporate Finance, Elsevier, vol. 53(C), pages 174-201.
- Hans B. Christensen & Valeri V. Nikolaev & Regina Wittenberg‐Moerman, 2016. "Accounting Information in Financial Contracting: The Incomplete Contract Theory Perspective," Journal of Accounting Research, Wiley Blackwell, vol. 54(2), pages 397-435, May.
- Urooj Khan & Alvis K. Lo, 2019. "Bank Lending Standards and Borrower Accounting Conservatism," Management Science, INFORMS, vol. 65(11), pages 5337-5359, November.
- Jagadison K. Aier & Long Chen & Mikhail Pevzner, 2014. "Debtholders’ Demand for Conservatism: Evidence from Changes in Directors’ Fiduciary Duties," Journal of Accounting Research, Wiley Blackwell, vol. 52(5), pages 993-1027, December.
- Inder K. Khurana & Changjiang Wang, 2015. "Debt Maturity Structure and Accounting Conservatism," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 42(1-2), pages 167-203, January.
- Cyrus Aghamolla & Nan Li, 2018. "Debt Contract Enforcement and Conservatism: Evidence from a Natural Experiment," Journal of Accounting Research, Wiley Blackwell, vol. 56(5), pages 1383-1416, December.
More about this item
Keywords
Owner liability; Private firms; Cross-country study; Conditional conservatism; Book-tax conformity; Bankruptcy law;All these keywords.
JEL classification:
- M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
- G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
- G35 - Financial Economics - - Corporate Finance and Governance - - - Payout Policy
- K34 - Law and Economics - - Other Substantive Areas of Law - - - Tax Law
Statistics
Access and download statisticsCorrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jbecon:v:95:y:2025:i:2:d:10.1007_s11573-024-01209-4. See general information about how to correct material in RePEc.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .
Please note that corrections may take a couple of weeks to filter through the various RePEc services.