Accounting Conservatism, Earnings Persistence and Pricing Multiples on Earnings

In this paper, we examine the effect of accounting conservatism on earnings persistence and the stock market's valuation of earnings. This issue is of particular interest to regulators as to whether and to what extent conservatism is desirable. In general, mismatching between revenues and expenses a...

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Journal Title: SSRN Working Paper Series
Authors: Lucy Huajing Chen, Heibatollah Sami, Wonsun D. Paek
Format: Article
Language: English
Published: April 2007