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Accounting Conservatism In Non-State Companies And Consolidated Financial Statements

Author

Listed:
  • Kimouche Bilal

    (Professor, Start-ups Financing Lab in light of the Knowledge Economy (SFKE) University of Skikda, Algeria)

  • Boussenna Hemza

    (Lecturer A, Innovation and Financial Engineering Laboratory (INIF) Oum El Bouaghi University, Algeria)

Abstract

Research background Accounting conservatism has been a significant area of research in the last few decades due to its effects on financial reporting quality. Nevertheless, it has been influenced by many factors that lead companies to be more or less conservative. Purpose This paper aims to contribute to this research stream by exploring the impact of state ownership and consolidation on accounting conservatism. The literature has not given much attention to state ownership and has never explored consolidation. Research methodology The study employed the data of 90 Algerian companies from 2016 to 2021 and employed Basu’s (1997) model to measure conservatism. The relationships between variables were estimated using linear regression. Results The results indicate that Algerian companies’ financial statements are generally conservative. However, accounting conservatism is more prevalent in state companies and separate financial statements. Novelty The study is the first in Algeria and is among the few studies that are interested in accounting consolidation as a determinant of conservatism.

Suggested Citation

  • Kimouche Bilal & Boussenna Hemza, 2024. "Accounting Conservatism In Non-State Companies And Consolidated Financial Statements," Folia Oeconomica Stetinensia, Sciendo, vol. 24(2), pages 141-161.
    • Handle: RePEc:vrs:foeste:v:24:y:2024:i:2:p:141-161:n:1008
    DOI: 10.2478/foli-2024-0020
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    References listed on IDEAS

    as
    1. Garanina, Tatiana & Kim, Oksana, 2023. "The relationship between CSR disclosure and accounting conservatism: The role of state ownership," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 50(C).
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    More about this item

    Keywords

    Accounting conservatism; Asymmetric timeliness of earnings; State ownership; Accounting consolidation;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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