Long-run accounting conservatism and subsequent equity returns

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dc.contributor.author Badenhorst, Wessel M.
dc.date.accessioned 2016-06-20T07:09:18Z
dc.date.available 2016-06-20T07:09:18Z
dc.date.issued 2016-04
dc.description.abstract This paper investigates the impact of long-run accounting conservatism on subsequent equity returns. The accounting conservatism proxy used is based on prior research and considered for different possible specifications. In contrast to prior research, this study compensates for the impact of momentum and the accrual anomaly by using five-year subsequent buy and hold total returns. A three-factor Fama and French model finds that accounting conservatism does not have a significant impact on subsequent equity returns for a sample of US firms. Stratifying the sample into pre-crisis and crisis periods does not affect results. However, this study also reveals that firms within certain industries do benefit from increased accounting conservatism, during both pre-crisis and crisis sample periods. en_ZA
dc.description.department Accounting en_ZA
dc.description.librarian am2016 en_ZA
dc.description.uri http://reference.sabinet.co.za/sa_epublication/jefs en_ZA
dc.identifier.citation Badenhorst, WM 2016, 'Long-run accounting conservatism and subsequent equity returns', Journal of Economic and Financial Sciences, vol. 9, no. 1, pp. 60-75. en_ZA
dc.identifier.issn 1995-7076 (print)
dc.identifier.issn 2312-2803 (online)
dc.identifier.uri http://hdl.handle.net/2263/53253
dc.language.iso en en_ZA
dc.publisher University of Johannesburg en_ZA
dc.rights University of Johannesburg en_ZA
dc.subject Accounting conservatism en_ZA
dc.subject Financial crisis en_ZA
dc.subject Industry differences en_ZA
dc.subject Long-term returns en_ZA
dc.subject Three-factor model en_ZA
dc.title Long-run accounting conservatism and subsequent equity returns en_ZA
dc.type Article en_ZA


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