1,809
Views
0
CrossRef citations to date
0
Altmetric
Research Article

Confucian culture and accounting conservatism: evidence from China

, , &

References

  • Ahmed, A.S., Billings, B.K., Morton, R.M., & Stanford-Harris, M. (2002). The role of accounting conservatism in mitigating bondholder-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. (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
  • Alam, P., & Petruska, K.A. (2012). Conservatism, SEC investigation, and fraud. Journal of Accounting and Public Policy, 31(4), 399–431. https://doi.org/10.1016/j.jaccpubpol.2012.05.001
  • Ball, R., & Shivakumar, L. (2005). Earnings quality in UK private firms: Comparative loss recognition timeliness. Journal of Accounting and Economics, 39(1), 83–128. https://doi.org/10.1016/j.jacceco.2004.04.001
  • 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
  • Banker, R.D., Basu, S., Byzalov, D., & Chen, J.Y. (2016). The confounding effect of cost stickiness on conservatism estimates. Journal of Accounting and Economics, 61(1), 203–220. https://doi.org/10.1016/j.jacceco.2015.07.001
  • Basu, S. (1997). The conservatism principle and the asymmetric timeliness of earnings1. Journal of Accounting and Economics, 24(1), 3–37. https://doi.org/10.1016/S0165-4101(97)00014-1
  • Benson, B.W., & Davidson III, W.N. (2009). Reexamining the managerial ownership effect on firm value. Journal of Corporate Finance, 15(5), 573–586. https://doi.org/10.1016/j.jcorpfin.2009.08.002
  • Bjornsen, M., Do, C., & Omer, T.C. (2019). The influence of country-level religiosity on accounting conservatism. Journal of International Accounting Research, 18(1), 1–26. https://doi.org/10.2308/jiar-52270
  • Bloom, R., & Solotko, J. (2003). The foundation of Confucianism in Chinese and Japanese accounting. Accounting, Business & Financial History, 13(1), 27–40. https://doi.org/10.1080/09585200210164566c
  • Brink, A.G., & Rankin, F.W. (2013). The effects of risk preference and loss aversion on individual behavior under bonus, penalty, and combined contract frames. Behavioral Research in Accounting, 25(2), 145–170. https://doi.org/10.2308/bria-50408
  • Cano-Rodríguez, M. (2010). Big auditors, private firms and accounting conservatism: Spanish evidence. European Accounting Review, 19(1), 131–159. https://doi.org/10.1080/09638180902989426
  • Chan, G.K.Y. (2008). The relevance and value of Confucianism in contemporary business ethics. Journal of Business Ethics, 77(3), 347–360. https://doi.org/10.1007/s10551-007-9354-z
  • Chen, H., Chen, J.Z., Lobo, G.J., & Wang, Y. (2010). Association between borrower and lender state ownership and accounting conservatism. Journal of Accounting Research, 48(5), 973–1014. https://doi.org/10.1111/j.1475-679X.2010.00385.x
  • Cheng, C.A., Huang, H.H., & Li, Y. (2015). Hedge fund intervention and accounting conservatism. Contemporary Accounting Research, 32(1), 392–421. https://doi.org/10.1111/1911-3846.12076
  • Chen, L., Jin, Z., Ma, Y., & Xu, H. (2019). Confucianism, openness to the West, and corporate investment efficiency. European Financial Management, 25(3), 554–590. https://doi.org/10.1111/eufm.12173
  • Choi, J.H., Kim, J.B., Qiu, A.A., & Zang, Y. (2012). Geographic proximity between auditor and client: How does it impact audit quality? Auditing: A Journal of Practice & Theory, 31(2), 43–72. https://doi.org/10.2308/ajpt-10241
  • Cohen, J.R., & Bennie, N.M. (2006). The applicability of a contingent factors model to accounting ethics research. Journal of Business Ethics, 68(1), 1–18. https://doi.org/10.1007/s10551-006-9036-2
  • Danigelis, N.L., Hardy, M., & Cutler, S.J. (2007). Population aging, intracohort aging, and sociopolitical attitudes. American Sociological Review, 72(5), 812–830. https://doi.org/10.1177/000312240707200508
  • DeFond, M.L., Lim, C.Y., & Zang, Y. (2016). Client conservatism and auditor-client contracting. The Accounting Review, 91(1), 69–98. https://doi.org/10.2308/accr-51150
  • Dhaliwal, D., Huang, S., Khurana, I.K., & Pereira, R. (2014). Product market competition and conditional conservatism. Review of Accounting Studies, 19(4), 1309–1345. https://doi.org/10.1007/s11142-013-9267-2
  • Dillard, J.F., & Yuthas, K. (2001). A responsibility ethics for audit expert systems. Journal of Business Ethics, 30(4), 337–359. https://doi.org/10.1023/A:1010720630914
  • Du, X. (2013). Does religion matter to owner-manager agency costs? Evidence from China. Journal of Business Ethics, 118(2), 319–347. https://doi.org/10.1007/s10551-012-1569-y
  • Du, X. (2015). Does Confucianism reduce minority shareholder expropriation? Evidence from China. Journal of Business Ethics, 132(4), 661–716. https://doi.org/10.1007/s10551-014-2325-2
  • Du, X. (2016). Does Confucianism reduce board gender diversity? Firm-level evidence from China. Journal of Business Ethics, 136(2), 399–436. https://doi.org/10.1007/s10551-014-2508-x
  • Ettredge, M., Huang, Y., & Zhang, W. (2012). Earnings restatements and differential timeliness of accounting conservatism. Journal of Accounting and Economics, 53(3), 489–503. https://doi.org/10.1016/j.jacceco.2012.01.002
  • Francis, R., & Armstrong, A. (2003). Ethics as a risk management strategy: The Australian experience. Journal of Business Ethics, 45(4), 375–385. https://doi.org/10.1023/A:1024163831371
  • Gao, S., & Handley-Schachler, M. (2003). The influences of confucianism, Feng Shui and Buddhism in Chinese accounting history. Accounting, Business & Financial History, 13(1), 41–68. https://doi.org/10.1080/09585200210164566d
  • Gubler, J.R., Herrick, S., Price, R.A., & Wood, D.A. (2018). Violence, aggression, and ethics: The link between exposure to human violence and unethical behavior. Journal of Business Ethics, 147(1), 25–34. https://doi.org/10.1007/s10551-015-2926-4
  • Haw, I.M., Lee, J.J., & Lee, W.J. (2014). Debt financing and accounting conservatism in private firms. Contemporary Accounting Research, 31(4), 1220–1259. https://doi.org/10.1111/1911-3846.12064
  • Heflin, F., Hsu, C., & Jin, Q. (2015). Accounting conservatism and street earnings. Review of Accounting Studies, 20(2), 674–709. https://doi.org/10.1007/s11142-014-9311-x
  • Heyes, A., Rickman, N., & Tzavara, D. (2004). Legal expenses insurance, risk aversion and litigation. International Review of Law and Economics, 24(1), 107–119. https://doi.org/10.1016/j.irle.2004.03.007
  • Hilary, G., & Hui, K.W. (2009). Does religion matter in corporate decision making in America? Journal of Financial Economics, 93(3), 455–473. https://doi.org/10.1016/j.jfineco.2008.10.001
  • Hill, J.S. (2006). Confucianism and the art of Chinese management. Journal of Asia Business Studies, 1(1), 1–9. https://doi.org/10.1108/15587890680001299
  • Ho, S.S., Li, A.Y., Tam, K., & Zhang, F. (2015). CEO gender, ethical leadership, and accounting conservatism. Journal of Business Ethics, 127(2), 351–370. https://doi.org/10.1007/s10551-013-2044-0
  • Hubbard, F.P. (1962). Law and Ethics. In B. N.k (Ed.), Who decides? Contemporary issues in biomedicine, ethics, and society (pp. 193-200). Humana Press. https://doi.org/10.1007/978-1-4612-5823-0_16
  • Hui, K.W., Klasa, S., & Yeung, P.E. (2012). Corporate suppliers and customers and accounting conservatism. Journal of Accounting and Economics, 53(1–2), 115–135. https://doi.org/10.1016/j.jacceco.2011.11.007
  • Hwang, D., Staley, B., Te Chen, Y., & Lan, J.S. (2008). Confucian culture and whistle-blowing by professional accountants: An exploratory study. Managerial Auditing Journal, 23(5), 504–526. https://doi.org/10.1108/02686900810875316
  • Ip, P.K. (2009). Is Confucianism good for business ethics in China?. Journal of Business Ethics, 88(3), 463–476. https://doi.org/10.1007/s10551-009-0120-2
  • Jenkins, D.S., & Velury, U. (2008). Does auditor tenure influence the reporting of conservative earnings?. Journal of Accounting and Public Policy, 27(2), 115–132. https://doi.org/10.1016/j.jaccpubpol.2008.01.005
  • 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
  • Kanagaretnam, K., Lim, C.Y., & Lobo, G.J. (2014). Influence of national culture on accounting conservatism and risk-taking in the banking industry. The Accounting Review, 89(3), 1115–1149. https://doi.org/10.2308/accr-50682
  • Khan, M., & Watts, R.L. (2009). Estimation and empirical properties of a firm-year measure of accounting conservatism. Journal of Accounting and Economics, 48(2–3), 132–150. https://doi.org/10.1016/j.jacceco.2009.08.002
  • Kim, J.B., & Zhang, L. (2016). Accounting conservatism and stock price crash risk: Firm-level evidence. Contemporary Accounting Research, 33(1), 412–441. https://doi.org/10.1111/1911-3846.12112
  • Koch, A., Ruenzi, S., & Starks, L. (2016). Commonality in liquidity: A demand-side explanation. The Review of Financial Studies, 29(8), 1943–1974. https://doi.org/10.1093/rfs/hhw026
  • Koh, W.C., & Lee, K.W. (2017). Do auditors recognize managerial risk-taking incentives?. International Journal of Business, 22(3), 206–229. https://search-ebscohost-com-s.libproxy.xmu.edu.cn:443/login.aspx?direct=true&db=eoh&AN=1670199&lang=zh-cn&site=ehost-live
  • Krishnan, G.V., & Visvanathan, G. (2008). Does the SOX definition of an accounting expert matter? The association between audit committee directors’ accounting expertise and accounting conservatism. Contemporary Accounting Research, 25(3), 827–858. https://doi.org/10.1506/car.25.3.7
  • 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
  • Lara, J.M.G., Osma, B.G., & Penalva, F. (2009). Accounting conservatism and corporate governance. Review of Accounting Studies, 14(1), 161–201. https://doi.org/10.1007/s11142-007-9060-1
  • Lara, J.M.G., Osma, B.G., & Penalva, F. (2016). Accounting conservatism and firm investment efficiency. Journal of Accounting and Economics, 61(1), 221–238. https://doi.org/10.1016/j.jacceco.2015.07.003
  • Lin, L. (2016). Institutional ownership composition and accounting conservatism. Review of Quantitative Finance and Accounting, 46(2), 359–385. https://doi.org/10.1007/s11156-014-0472-2
  • Liu, Z., & Elayan, F.A. (2015). Litigation risk, information asymmetry and conditional conservatism. Review of Quantitative Finance and Accounting, 44(4), 581–608. https://doi.org/10.1007/s11156-013-0428-y
  • Li, X., Wang, S.S., & Wang, X. (2017b). Trust and stock price crash risk: Evidence from China. Journal of Banking & Finance, 76, 74–91. https://doi.org/10.1016/j.jbankfin.2016.12.003
  • Li, W., Wang, Y., Wu, L., & Xiao, J.Z. (2017a). The ethical dimension of management ownership in China. Journal of Business Ethics, 141(2), 381–392. https://doi.org/10.1007/s10551-015-2722-1
  • Lobo, G.J., & Zhou, J. (2006). Did conservatism in financial reporting increase after the Sarbanes-Oxley Act? Initial evidence. Accounting Horizons, 20(1), 57–73. https://doi.org/10.2308/acch.2006.20.1.57
  • Ma, L., Zhang, M., Gao, J., & Ye, T. (2020). The effect of religion on accounting conservatism. European Accounting Review, 29(2), 383–407. https://doi.org/10.1080/09638180.2019.1600421
  • McGuire, S.T., Omer, T.C., & Sharp, N.Y. (2012). The impact of religion on financial reporting irregularities. The Accounting Review, 87(2), 645–673. https://doi.org/10.2308/accr-10206
  • Miles, L., & Goo, S.H. (2013). Corporate governance in Asian Countries: Has Confucianism anything to offer?. Business and Society Review, 118(1), 23–45. https://doi.org/10.1111/basr.12001
  • Mitra, S., Jaggi, B., & Hossain, M. (2013). Internal control weaknesses and accounting conservatism: Evidence from the post–Sarbanes–Oxley period. Journal of Accounting, Auditing & Finance, 28(2), 152–191. https://doi.org/10.1177/0148558X13479057
  • Nikolaev, V.V. (2010). Debt covenants and accounting conservatism. Journal of Accounting Research, 48(1), 137–176. https://doi.org/10.1111/j.1475-679X.2009.00359.x
  • Qiang, X. (2007). The effects of contracting, litigation, regulation, and tax costs on conditional and unconditional conservatism: Cross-sectional evidence at the firm level. The Accounting Review, 82(3), 759–796. https://doi.org/10.2308/accr.2007.82.3.759
  • Romar, E.J. (2002). Virtue is good business: Confucianism as a practical business ethics. Journal of Business Ethics, 38(1–2), 119–131. https://doi.org/10.1023/A:1015760710802
  • Watts, R.L. (2003a). 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. (2003b). Conservatism in accounting part II: Evidence and research opportunities. Accounting Horizons, 17(4), 287–301. https://doi.org/10.2308/acch.2003.17.4.287
  • Williamson, O.E. (2000). The new institutional economics: Taking stock, looking ahead. Journal of Economic Literature, 38(3), 595–613. https://doi.org/10.1257/jel.38.3.595
  • Xu, Y., Xuan, Y., & Zheng, G. (2021). Internet searching and stock price crash risk: Evidence from a quasi-natural experiment. Journal of Financial Economics, 141(1), 255–275. https://doi.org/10.1016/j.jfineco.2021.03.003
  • Yeo, G.H., Tan, P.M., Ho, K.W., & Chen, S.S. (2002). Corporate ownership structure and the informativeness of earnings. Journal of Business Finance & Accounting, 29(7–8), 1023–1046. https://doi.org/10.1111/1468-5957.00460
  • 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
  • Zhang, W., & Ke, R. (2002). Trust in China: A cross-regional analysis. Economic Research Journal (In Chinese), 10, 59–70. https://kns.cnki.net/kcms/detail/detail.aspx?FileName=JJYJ200210007&DbName=CJFQ2002
  • Zhu, B., & Xie, P. (1979). The index of stelae of chin-shih in the Ming and Qing dynasties (in Chinese). Shanghai Ancient Books Press.