Accounting conservartism, debt contract and operating cycle

• Ano de defesa: 2019
• Autor(a) principal: Barino, Humberto Pigozzo Martins
• Tipo de documento: Dissertação
• Tipo de acesso: Acesso aberto
• Idioma: por
• Instituição de defesa: Universidade Federal do Espírito Santo; BR; Mestrado em Ciências Contábeis; Centro de Ciências Jurídicas e Econômicas; UFES; Programa de Pós-Graduação em Ciências Contábeis
• Palavras-chave em Português: Conservadorismo; Endividamento; Dívida; Ciclo operacional; Incerteza; Conditional conservatism; Debt contracting; Operating cycle; Uncertainty; subject.br-rjbn; Ciências Contábeis
• Link de acesso: http://repositorio.ufes.br/handle/10/13509

This study examines how leverage combined with the length of the operating cycle moderate the effect of conditional conservatism.I use a sample of U.S.firms and, alternatively, a sample of Brazilian firms.I estimate regressions with firm and year fixed-effects and show that longer operating cycles in highly leveraged firms reduce conservatism in the financial reporting, while longer operating cycles increase the conservatism in lower leveraged firms. Also, firms with shorter operating cycles increase the conservatism in highly leveraged firms, while lower leveraged firms with shorter operating cycles report less conservatively their accounting figures. My findingssuggest that debt drives the conservatism as in prior findings and show that the length of the operating cycle adds incremental information. Strengthen prior studies, my findings are in accordance with the accounting conservatism literature andextendprior literature that conservatism is a response to idiosyncratic uncertainty and that information quality are determined for firm specific characteristics.