Welcome to the InfoSci Platform
Board Characteristics' Impact on Accounting Conservatism Before and During the Financial Crisis

Board Characteristics' Impact on Accounting Conservatism Before and During the Financial Crisis

Pan Yuner, Georgios Georgakopoulos, Konstantinos Z. Vasileiou, Dionysios Kafousias
Copyright: © 2017 |Volume: 4 |Issue: 1 |Pages: 22
ISSN: 2334-4628|EISSN: 2334-4636|EISBN13: 9781522515616|DOI: 10.4018/IJCFA.2017010103
Cite Article Cite Article

MLA

Yuner, Pan, et al. "Board Characteristics' Impact on Accounting Conservatism Before and During the Financial Crisis." IJCFA vol.4, no.1 2017: pp.35-56. http://doi.org/10.4018/IJCFA.2017010103

APA

Yuner, P., Georgakopoulos, G., Vasileiou, K. Z., & Kafousias, D. (2017). Board Characteristics' Impact on Accounting Conservatism Before and During the Financial Crisis. International Journal of Corporate Finance and Accounting (IJCFA), 4(1), 35-56. http://doi.org/10.4018/IJCFA.2017010103

Chicago

Yuner, Pan, et al. "Board Characteristics' Impact on Accounting Conservatism Before and During the Financial Crisis," International Journal of Corporate Finance and Accounting (IJCFA) 4, no.1: 35-56. http://doi.org/10.4018/IJCFA.2017010103

Export Reference

Mendeley
Favorite Full-Issue Download

Abstract

This article investigates the extent that board characteristics and board strengths influence the accounting conservatism, estimated by market-based and accrual-based measures, before and during the financial crisis. The percentage of inside directors and the additional directorships (board characteristics) were negatively related to market-based conservatism. This relationship is weaker for the period during the financial crisis compared to the period before the crisis. The negative relationship found between CEO and chairman duality and accrual-based conservatism is weaker during the financial crisis than before the crisis, which implies that the financial crisis can be considered as an important element that leads to failures and weaknesses in corporate governance mechanisms. The results hold after controlling for inside directors' ownership, leverage, firm size, sales growth, sales opportunities, profitability and litigation risk, as well as for unobservable firm characteristics that are stable over time by using fixed effects regressions.

Request Access

You do not own this content. Please login to recommend this title to your institution's librarian or purchase it from the IGI Global bookstore.