Graduation Year
Spring 2013
Document Type
Campus Only Senior Thesis
Degree Name
Bachelor of Arts
Department
Economics-Accounting
Reader 1
George Batta
Terms of Use & License Information
Rights Information
© 2013 Alexander H. Perkins
Abstract
This paper examines the relationship between the accounting conservatism construct and the prediction of corporate bankruptcy. Prior research has explored the link between accounting quality and bankruptcy prediction, but it has not examined the relationship between accounting conservatism and bankruptcy prediction. This study hypothesizes that the inclusion of conservatism metrics in the bankruptcy hazard model estimation process should have an incremental effect on the predictive ability of bankruptcy hazard models. This paper finds that the inclusion of conservatism metrics does enhance the predictive power of bankruptcy hazard models for certain subgroups of a population partitioned on the basis of accounting conservatism metrics.
Recommended Citation
Perkins, Alexander H., "Accounting Conservatism and the Prediction of Corporate Bankruptcy" (2013). CMC Senior Theses. 711.
https://scholarship.claremont.edu/cmc_theses/711
This thesis is restricted to the Claremont Colleges current faculty, students, and staff.
