Title: Accounting conservatism and firms' performance: evidence from Malaysian listed firms

Authors: Saif Ur-Rehman; Faisal Khan; Dalia Ali Mostafa Hemdan; Hashim Khan

Addresses: Faculty of Management, Canadian University Dubai, UAE ' Department of Accounting and Finance, City University College Ajman, UAE ' Department of Accounting, Universiti Teknologi Mara (UiTM), Malaysia ' Faculty of Management, COMSATS University Islamabad, Pakistan

Abstract: Accounting conservatism is a mechanism used to develop a true and fair view of financial statements which relies significantly on factors affecting the finance managers in formulating conservative policy. Methodologically, two approaches have been adopted to collect the primary and secondary data of Malaysian listed firms. Findings indicate that external auditors' influence, audit committee influence and stock market uncertainty are main predictors well-supported by primary and secondary data to determine the degree of conservatism at firm level. It is empirically evident that three of the five factors are affecting the conservative accounting policy among Malaysian firms.

Keywords: conservatism in accounting; antecedents of conservative accounting policy; Malaysian firms.

DOI: 10.1504/AJFA.2022.130351

American Journal of Finance and Accounting, 2022 Vol.7 No.1, pp.1 - 21

Accepted: 02 Jun 2020
Published online: 18 Apr 2023 *

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