Murdoch University Research Repository

Welcome to the Murdoch University Research Repository

The Murdoch University Research Repository is an open access digital collection of research
created by Murdoch University staff, researchers and postgraduate students.

Learn more

Product Market Competition and Accounting Conservatism: International evidence

Haw, I.M., Li, Y. and Zhang, F.F. (2012) Product Market Competition and Accounting Conservatism: International evidence. In: American Accounting Association (AAA) 2012 Annual Conference., 4-8 August 2012, Washington, DC

Free to read:
*No subscription required


This paper examines the role played by product market competition in shaping accounting conservatism in an international setting. Using a large dataset from 38 countries, we find that product market competition is positively associated with accounting conservatism and that the positive association is strengthened in countries with strong legal institutions. Our empirical findings suggest that product market competition and strong legal institutions jointly drive accounting conservatism. Our study highlights the importance of product market competition as an effective industry-level governance mechanism in determining the quality of accounting earnings.

Item Type: Conference Paper
Publisher: American Accounting Association
Copyright: The Authors
Conference Website:
Item Control Page Item Control Page