Enforcement and accounting conservatism: analysis of publicly capital companies in the G20 member countries
DOI:
https://doi.org/10.5007/2175-8069.2023.e90103Keywords:
Accounting Conservatism, Economic development, Enforcement, Legal SystemAbstract
This article aims to analyze the influence of country enforcement on the accounting conservatism of publicly traded companies in the G20 member countries. To this end, 33,228 publicly traded non-financial companies were analyzed in the period from 2016 to 2020, being classified according to their economic development in the analyzed countries (Developed and Emerging), as well as the legal regime adopted by these economies (Common Law and Civil Law). For analysis, a panel data regression was performed, using the conditional conservatism models proposed by Basu (1997) and Ball and Shivakumar (2006). From the comparative analysis of the results, it was possible to show that developed countries tend to present greater conservatism in their accounting numbers, as well as countries with a Common Law legal system, noting that a more rigorous enforcement tends to make companies show greater conservatism in their results.
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