Campus Only Senior Thesis
Bachelor of Arts
© 2013 Alexander H. Perkins
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.
Perkins, Alexander H., "Accounting Conservatism and the Prediction of Corporate Bankruptcy" (2013). CMC Senior Theses. 711.
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