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Conservatism in Accounting:An Empirical Study of Indian Companies
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Conservatism in accounting dates back to early 15th century. Recently attempts have been made by major standard-setters of the world to reduce conservatism in accounting. However, the results of recent research studies signal universal pervasiveness of conservatism. Keeping this in view, an attempt has been made to measure conservatism in accounting in the Indian corporate sector and capture changes therein over the period ranging from 1997-2010. The results of the study indicate that in spite of the efforts by the standard-setters to reduce conservatism, there has been a considerable increase in degree of conservatism in India over time.
Keywords
Conservatism, Book-To-Market Ratio, Bias.
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