Original scientific paper
LESSONS FROM FINANCIAL CRISIS: HAS ACCOUNTING IN CENTRAL AND EASTERN EUROPE BECOME MORE CONSERVATIVE?
Slavko Sodan
Zeljana Aljinovic Barac
Tina Vuko
Abstract
Recent change to a fair-value-based accounting system
portends shift from traditional conservative accounting
and is often considered to be one of the
factors that partially contributed to the ongoing financial
crisis. The main aim of this paper is to examine
the level of conservatism prior and during financial
crisis. Empirical analysis is conducted on the sample
of listed companies from Central and Eastern Europe
using panel data analysis techniques. Obtained results
suggest that level of conservatism is even lower during
the financial crisis than before the crisis. These
findings could be of interest to accounting standard
setters and regulators in the process of financial reporting
quality improvement.
Keywords
Accounting conservatism; Financial crisis; Earnings quality; Financial reporting
Hrčak ID:
133140
URI
Publication date:
1.12.2013.
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