Accounting Conservatism, Earnings Persistence, and Pricing Multiples on Earnings
We examine the effect of accounting conservatism on earnings persistence and the stock market's valuation of earnings. Using a sample of U.S. companies during the period of 1988-2010, we find that firms with more conservative accounting generate less persistent earnings than firms with less conserva...
|Journal Title:||Accounting Horizons Vol. 28; no. 2|
|Authors:||Lucy Huajing Chen, Heibatollah Sami, Wonsun Paek, David M Folsom|