Accounting Conservatism as a Protective Mechanism Exploring Its Impact on the Relationship Between Financial Decisions and Likelihood of Financial Distress among Listed Firms in Kenya
Authors
Article Sidebar
Main Article Content
Abstract
Purpose- This study investigates the moderating role of accounting conservatism in the relationship between corporate financial decisions (financial leverage, investment rate, and dividend payout policy) and the likelihood of financial distress among firms listed on the Kenyan Securities Exchange.
Design/Methodology- The study analyzed a sample of 45 firms over 14 years from 2008 to 2021, resulting in 630 firm-year observations. Panel logistic regression was employed to assess secondary data from annual financial reports.
Findings- Results reveal that financial leverage and investment rate significantly increase financial distress risk, while dividend payout policy has a negative effect. Accounting conservatism moderates these relationships by reducing the impact of financial leverage and enhancing the effect of dividend policy.
Practical Implications- Managers should implement conservative accounting practices to align incentives with long-term shareholder interests, ensuring prudent financial reporting and minimizing financial distress risks.
Originality- This research contributes to the understanding of financial decisions and distress, offering insights into the role of accounting conservatism in promoting corporate financial stability.
Article Details
Copyright (c) 2025 Rodgers Maiyo, Josephat Cheboi, Dr. Patrick Limo
This work is licensed under a Creative Commons Attribution 4.0 International License.
The data that support the findings of this study are available from the corresponding author, [R. Maiyo], upon reasonable request.
Acharya, V. V., Le, H. T., & Shin, H. S. (2017). Bank capital and dividend externalities. The Review of Financial Studies, 30(3), 988-1018. CrossrefGoogle Scholar
Ahmadi, R., & Kordloei, H. (2018). The Effect of Financial Distress on the Investment Behavior of Companies Listed on Tehran Stock Exchange. Advances in Mathematical Finance and Applications, 3(4), 17-28.
Ahmed, A. S., & Duellman, S. (2013). Managerial overconfidence and accounting conservatism. Journal of accounting research, 51(1), 1-30. CrossrefGoogle Scholar
Al-Dhamari, R., Al-Wesabi, H., Farooque, O. A., Tabash, M. I., & El Refae, G. A. (2023). Does investment committee mitigate the risk of financial distress in GCC? The role of investment inefficiency. International Journal of Accounting & Information Management, 31(2), 321-354. CrossrefGoogle Scholar
Ali, H. (2022). Corporate dividend policy in the time of COVID-19: Evidence from the G-12 countries. Finance Research Letters, 46, 102493. CrossrefGoogle Scholar
ALShubiri, F. N. (2011). The effect of working capital practices on risk management: Evidence from Jordan. Global Journal of business research, 5(1), 39-54.
Altman, E. I., Hotchkiss, E., & Wang, W. (2019). Corporate financial distress, restructuring, and bankruptcy: analyze leveraged finance, distressed debt, and bankruptcy. John Wiley & Sons. CrossrefGoogle Scholar
Amidu, M., & Abor, J. (2006). Determinants of dividend payout ratios in Ghana. The Journal of Risk Finance, 7(2), 136-145. CrossrefGoogle Scholar
Andriosopoulos, D., De Cesari, A., & Stathopoulos, K. (2021). Excess corporate payouts and financial distress risk. European Financial Management, 27(5), 865-898. CrossrefGoogle Scholar
Ball, R., & Shivakumar, L. (2005). Earnings quality in UK private firms: comparative loss recognition timeliness. Journal of accounting and Economics, 39(1), 83-128. CrossrefGoogle Scholar
Bartram, S. M., Brown, P. R., How, J. C., & Verhoeven, P. (2012). Agency conflicts and corporate payout policies: a global study. WBS Finance Group Research Paper(118). CrossrefGoogle Scholar
Baumol, W. J. (1962). On the Theory of Expansion of the Firm. The American economic review, 52(5), 1078-1087.
Beasley, M. S. (1996). An empirical analysis of the relation between the board of director composition and financial statement fraud. Accounting review, 443-465. CrossrefGoogle Scholar
Beaver, W. H., & Ryan, S. G. (2005). Conditional and unconditional conservatism: Concepts and modeling. Review of accounting studies, 10, 269-309. CrossrefGoogle Scholar
Bhagat, S., Moyen, N., & Suh, I. (2005). Investment and internal funds of distressed firms. Journal of Corporate Finance, 11(3), 449-472. CrossrefGoogle Scholar
Bhaskar, L. S., Krishnan, G. V., & Yu, W. (2017). Debt covenant violations, firm financial distress, and auditor actions. Contemporary accounting research, 34(1), 186-215. CrossrefGoogle Scholar
Bhattacharjee, A., & Han, J. (2014). Financial distress of Chinese firms: Microeconomic, macroeconomic and institutional influences. China Economic Review, 30, 244-262. CrossrefGoogle Scholar
Biddle, G. C., Ma, M. L., & Song, F. M. (2022). Accounting conservatism and bankruptcy risk. Journal of Accounting, Auditing & Finance, 37(2), 295-323.
Black, F., & Scholes, M. (1974). The effects of dividend yield and dividend policy on common stock prices and returns. Journal of financial economics, 1(1), 1-22. CrossrefGoogle Scholar
Bolton, P., Chen, H., & Wang, N. (2013). Market timing, investment, and risk management. Journal of financial economics, 109(1), 40-62. CrossrefGoogle Scholar
Campello, M., Giambona, E., Graham, J. R., & Harvey, C. R. (2011). Liquidity management and corporate investment during a financial crisis. The Review of Financial Studies, 24(6), 1944-1979. CrossrefGoogle Scholar
Cao, J., Kubick, T. R., & Masli, A. N. (2017). Do corporate payouts signal going-concern risk for auditors? Evidence from audit reports for companies in financial distress. Review of Quantitative Finance and Accounting, 49, 599-631. CrossrefGoogle Scholar
Cao, L., Du, Y., & Hansen, J. Ø. (2017). Foreign institutional investors and dividend policy: Evidence from China. International Business Review, 26(5), 816-827. CrossrefGoogle Scholar
Carpenter, R. E., Fazzari, S. M., Petersen, B. C., Kashyap, A. K., & Friedman, B. M. (1994). Inventory investment, internal-finance fluctuations, and the business cycle. Brookings papers on economic activity, 1994(2), 75-138. CrossrefGoogle Scholar
Carrizosa, R., & Ryan, S. G. (2013). Conservatism, covenants, and recovery rates. Available at SSRN 2197513. CrossrefGoogle Scholar
Chen, C. C., Chen, C. D., & Lien, D. (2020). Financial distress prediction model: The effects of corporate governance indicators. Journal of Forecasting, 39(8), 1238-1252. CrossrefGoogle Scholar
Chen, L.-J., & Chen, S.-Y. (2011). The influence of profitability on firm value with capital structure as the mediator and firm size and industry as moderators. Investment Management and Financial Innovations(8, Iss. 3), 121-129.
Christensen, D. M., Dhaliwal, D. S., Boivie, S., & Graffin, S. D. (2015). Top management conservatism and corporate risk strategies: Evidence from managers' personal political orientation and corporate tax avoidance. Strategic Management Journal, 36(12), 1918-1938. CrossrefGoogle Scholar
Clayton, M., Liñares-Zegarra, J., & Wilson, J. O. (2015). Does debt affect health? Cross country evidence on the debt-health nexus. Social Science & Medicine, 130, 51-58. CrossrefGoogle Scholar
Črnigoj, M., & Verbič, M. (2014). Financial constraints and corporate investments during the current financial and economic crisis: The credit crunch and investment decisions of Slovenian firms. Economic Systems, 38(4), 502-517. CrossrefGoogle Scholar
Croce, M. M., Lettau, M., & Ludvigson, S. C. (2015). Investor information, long-run risk, and the term structure of equity. The Review of Financial Studies, 28(3), 706-742. CrossrefGoogle Scholar
DeAngelo, H., & DeAngelo, L. (1990). Dividend policy and financial distress: An empirical investigation of troubled NYSE firms. The Journal of Finance, 45(5), 1415-1431. CrossrefGoogle Scholar
Dirman, A. (2020). Financial distress: the impacts of profitability, liquidity, leverage, firm size, and free cash flow. International Journal of Business, Economics and Law, 22(1), 17-25.
Donovan, J., Frankel, R. M., & Martin, X. (2015). Accounting conservatism and creditor recovery rate. The Accounting Review, 90(6), 2267-2303. CrossrefGoogle Scholar
Easterbrook, F. H. (1984). Two agency-cost explanations of dividends. The American economic review, 74(4), 650-659.
El‐Sayed Ebaid, I. (2009). The impact of capital‐structure choice on firm performance: empirical evidence from Egypt. The Journal of Risk Finance, 10(5), 477-487. CrossrefGoogle Scholar
Eldomiaty, T. I., Andrikopoulos, P., & Bishara, M. K. (2019). Financial decisions and growth of the firm under high and low levels of information asymmetry. In Essays in Financial Economics (Vol. 35, pp. 19-51). Emerald Publishing Limited. CrossrefGoogle Scholar
Evans, D. S. (1987). The relationship between firm growth, size, and age: Estimates for 100 manufacturing industries. The journal of industrial economics, 567-581. CrossrefGoogle Scholar
Fabozzi, F. J., & Drake, P. P. (2009). Finance: capital markets, financial management, and investment management. John Wiley & Sons. CrossrefGoogle Scholar
Farooq, M., & Noor, A. (2021). The impact of corporate social responsibility on financial distress: Evidence from developing economy. Pacific Accounting Review, 33(3), 376-396. CrossrefGoogle Scholar
Finishtya, F. C. (2019). The role of cash flow of operational, profitability, and financial leverage in predicting financial distress on manufacturing company in Indonesia. Jurnal Aplikasi Manajemen, 17(1), 110-117. CrossrefGoogle Scholar
Frank, M. Z., & Goyal, V. K. (2008). Trade-off and pecking order theories of debt. Handbook of empirical corporate finance, 135-202.
Furceri, D., & Mourougane, A. (2009). The effect of financial crises on potential output: new empirical evidence from OECD countries. CrossrefGoogle Scholar
Garcia-Appendini, E. (2018). Financial distress and competitors' investment. Journal of Corporate Finance, 51, 182-209. CrossrefGoogle Scholar
Garman, M. B., & Ohlson, J. A. (1980). Information and the sequential valuation of assets in arbitrage-free economies. Journal of accounting research, 420-440. CrossrefGoogle Scholar
Geng, R., Bose, I., & Chen, X. (2015). Prediction of financial distress: An empirical study of listed Chinese companies using data mining. European Journal of Operational Research, 241(1), 236-247. CrossrefGoogle Scholar
Gentry, J. A., Newbold, P., & Whitford, D. T. (1985). Classifying bankrupt firms with funds flow components. Journal of accounting research, 146-160. CrossrefGoogle Scholar
George, T. J., & Hwang, C.-Y. (2010). A resolution of the distress risk and leverage puzzles in the cross section of stock returns. Journal of financial economics, 96(1), 56-79. CrossrefGoogle Scholar
Giarto, R. V. D., & Fachrurrozie, F. (2020). The effect of leverage, sales growth, cash flow on financial distress with corporate governance as a moderating variable. Accounting Analysis Journal, 9(1), 15-21. CrossrefGoogle Scholar
Gichaiya, M. W., Muchina, S., & Macharia, S. (2019). Corporate risk, firm size and financial distress: evidence from non-financial firms listed in Kenya.
Gong, G., & Luo, S. (2018). Lenders' experience with borrowers' major customers and the debt contracting demand for accounting conservatism. The Accounting Review, 93(5), 187-222. CrossrefGoogle Scholar
Gordon, M. J. (1963). Optimal investment and financing policy. The Journal of Finance, 18(2), 264-272. CrossrefGoogle Scholar
Grossman, S. J., & Hart, O. D. (1982). Corporate financial structure and managerial incentives. In The economics of information and uncertainty (pp. 107-140). University of Chicago Press.
Guney, Y., & Ozkan*, A. (2005). New insights on the importance of agency costs for corporate debt maturity decisions. Applied Financial Economics Letters, 1(4), 233-238. CrossrefGoogle Scholar
Habib, A., Uddin Bhuiyan, B., & Islam, A. (2013). Financial distress, earnings management and market pricing of accruals during the global financial crisis. Managerial Finance, 39(2), 155-180. CrossrefGoogle Scholar
Hair Jr, J. F., Matthews, L. M., Matthews, R. L., & Sarstedt, M. (2017). PLS-SEM or CB-SEM: updated guidelines on which method to use. International Journal of Multivariate Data Analysis, 1(2), 107-123. CrossrefGoogle Scholar
Harris, M., & Raviv, A. (1988). Corporate control contests and capital structure. Journal of financial economics, 20, 55-86. CrossrefGoogle Scholar
He, W. (2012). Agency problems, product market competition and dividend policies in Japan. Accounting & Finance, 52(3), 873-901. CrossrefGoogle Scholar
Ijaz, F., Mirza, A., Nisar, H., Rasool, N., Javed, H. A., Sarwar, S., Sarwar, A., Aziz, B., & Durani, Z. on Firm’s Investment Decision.
Jaafar, M. N., Muhamat, A. A., Alwi, S. F. S., Karim, N. A., & Rahman, S. (2018). Determinants of financial distress among the companies practise note 17 listed in Bursa Malaysia. International Journal of Academic Research in Business and Social Sciences, 8(11), 800-811. CrossrefGoogle Scholar
Jaafar, M. N., Muhamat, A. A., Basri, M. F., & Joreme, A. A. (2020). Determinants of capital structure among shariah compliant industrial product and services firms listed on Ace Market, Bursa Malaysia. Journal of Islamic Finance, 9(1), 024-034. CrossrefGoogle Scholar
Jensen, M. C. (1986). Agency costs of free cash flow, corporate finance and takeovers. American economic review.
Jensen, M. C. (1989). Active investors, LBOs, and the privatization of bankruptcy. Journal of applied corporate finance, 2(1), 35-44. CrossrefGoogle Scholar
John, T. A., & John, K. (1993). Top‐management compensation and capital structure. The Journal of Finance, 48(3), 949-974. CrossrefGoogle Scholar
Kao, H.-S., & Sie, P.-J. (2016). Accounting conservatism trends and financial distress: considering the endogeneity of the C-score. International Journal of Financial Research, 7(4), 149-167. CrossrefGoogle Scholar
Khurana, I. K., & Wang, C. (2015). Debt maturity structure and accounting conservatism. Journal of Business Finance & Accounting, 42(1-2), 167-203. CrossrefGoogle Scholar
Khurshid, M. K., Sabir, H. M., Tahir, S. H., & Abrar, M. (2019). Impact of ownership structure and board composition on financial distress of Pakistan Stock Exchange listed manufacturing firms. & Applied Sciences & Technologies, 11(2), 1-14.
Koh, S., Durand, R. B., Dai, L., & Chang, M. (2015). Financial distress: Lifecycle and corporate restructuring. Journal of Corporate Finance, 33, 19-33. CrossrefGoogle Scholar
La Porta, R., Lopez‐de‐Silanes, F., Shleifer, A., & Vishny, R. W. (2000). Agency problems and dividend policies around the world. The Journal of Finance, 55(1), 1-33. CrossrefGoogle Scholar
Lafond, R., & Roychowdhury, S. (2008). Managerial ownership and accounting conservatism. Journal of accounting research, 46(1), 101-135. CrossrefGoogle Scholar
Lee, S., Koh, Y., & Kang, K. H. (2011). Moderating effect of capital intensity on the relationship between leverage and financial distress in the US restaurant industry. International Journal of Hospitality Management, 30(2), 429-438. CrossrefGoogle Scholar
López-Gutiérrez, C., Sanfilippo-Azofra, S., & Torre-Olmo, B. (2015). Investment decisions of companies in financial distress. BRQ Business Research Quarterly, 18(3), 174-187. CrossrefGoogle Scholar
Mandelker, G. N., & Rhee, S. G. (1984). The impact of the degrees of operating and financial leverage on systematic risk of common stock. Journal of financial and quantitative analysis, 19(1), 45-57. CrossrefGoogle Scholar
Männasoo, K., Maripuu, P., & Hazak, A. (2018). Investments, credit, and corporate financial distress: Evidence from Central and Eastern Europe. Emerging Markets Finance and Trade, 54(3), 677-689. CrossrefGoogle Scholar
Maripuu, P., & Männasoo, K. (2014). Financial distress and cycle-sensitive corporate investments. Baltic Journal of Economics, 14(1-2), 181-193. CrossrefGoogle Scholar
Masdupi, E., Tasman, A., & Davista, A. (2018). The influence of liquidity, leverage and profitability on financial distress of listed manufacturing companies in Indonesia. First Padang International Conference On Economics Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA 2018), CrossrefGoogle Scholar
McKee, T. E., & Lensberg, T. (2002). Genetic programming and rough sets: A hybrid approach to bankruptcy classification. European Journal of Operational Research, 138(2), 436-451. CrossrefGoogle Scholar
Meckling, W. H., & Jensen, M. C. (1976). Theory of the Firm. Managerial Behavior, Agency Costs and Ownership Structure. CrossrefGoogle Scholar
Miller, M. H., & Modigliani, F. (1961). Dividend policy, growth, and the valuation of shares. the Journal of Business, 34(4), 411-433. CrossrefGoogle Scholar
Miller, M. H., & Rock, K. (1985). Dividend policy under asymmetric information. The Journal of Finance, 40(4), 1031-1051. CrossrefGoogle Scholar
Min, J. H., & Lee, Y.-C. (2005). Bankruptcy prediction using support vector machine with optimal choice of kernel function parameters. Expert systems with applications, 28(4), 603-614. CrossrefGoogle Scholar
Modigliani, F., & Miller, M. H. (1958). The cost of capital, corporation finance and the theory of investment. The American economic review, 48(3), 261-297.
Moh'd, M. A., Perry, L. G., & Rimbey, J. N. (1995). An investigation of the dynamic relationship between agency theory and dividend policy. Financial Review, 30(2), 367-385. CrossrefGoogle Scholar
Morgado, A., & Pindado, J. (2003). The underinvestment and overinvestment hypotheses: An analysis using panel data. European Financial Management, 9(2), 163-177. CrossrefGoogle Scholar
Muigai, R. G., & Muriithi, J. G. (2017). The moderating effect of firm size on the relationship between capital structure and financial distress of non-financial companies listed in Kenya. Journal of finance and accounting, 12(2), 151-158.
Mukoma, M. W. (2020). Financial Distress in Listed Manufacturing Entities in Kenya: Prediction and Rescue Strategies United States International University-Africa].
Myers, S. C. (1977). Determinants of corporate borrowing. Journal of financial economics, 5(2), 147-175. CrossrefGoogle Scholar
Nguyen, H. T. Y. (2024). Determinants of foreign direct investment in the agricultural sector: Empirical evidence based on economic regional data in Vietnam. Journal of Infrastructure, Policy and Development, 8(3), 2702. CrossrefGoogle Scholar
Nikolaev, V. V. (2010). Debt covenants and accounting conservatism. Journal of accounting research, 48(1), 137-176. CrossrefGoogle Scholar
Ninh, B. P. V., Do Thanh, T., & Hong, D. V. (2018). Financial distress and bankruptcy prediction: An appropriate model for listed firms in Vietnam. Economic Systems, 42(4), 616-624.
Ogawa, K. (2003). Financial distress and corporate investment: the Japanese case in the 90s. Available at SSRN 414980. CrossrefGoogle Scholar
Popov, A. (2014). Credit constraints and investment in human capital: Training evidence from transition economies. Journal of Financial Intermediation, 23(1), 76-100. CrossrefGoogle Scholar
Prasetyanto, D., Probohudono, A. N., Chayati, N., & Endiramurti, S. R. (2021). ANALYSIS OF FINANCIAL DISTRESS IN INDONESIA STATE-OWNED ENTERPRISE. International Journal of Economics, Business and Accounting Research (IJEBAR), 5(3), 2943-2951. CrossrefGoogle Scholar
Putri, W. C., Lindawati, L., & Mu'arif, S. (2023). THE INFLUENCE OF FINANCIAL DISTRESS, DEBT COVENANT AND POLITICAL COST ON ACCOUNTING CONSERVATISM IN BANKING SECTOR FINANCIAL SERVICES COMPANIES LISTED ON THE INDONESIAN STOCK EXCHANGE. International Journal Management and Economic, 2(3), 49-61. CrossrefGoogle Scholar
Rahayu, S., & Gunawan, D. I. (2018). Factors influencing the application of accounting conservatism in the company. KnE Social Sciences, 180–197-180–197. CrossrefGoogle Scholar
Rajan, R. G., & Zingales, L. (1995). What do we know about capital structure? Some evidence from international data. The Journal of Finance, 50(5), 1421-1460. CrossrefGoogle Scholar
Restianti, T., & Agustina, L. (2018). The effect of financial ratios on financial distress conditions in sub industrial sector company. Accounting Analysis Journal, 7(1), 25-33.
Rivandi, M., & Ariska, S. (2019). Pengaruh intensitas modal, dividend payout ratio dan financial distress terhadap konservatisme akuntansi. Jurnal Benefita: Ekonomi Pembangunan, Manajemen Bisnis & Akuntansi, 4(1), 104-114. CrossrefGoogle Scholar
Roden, D. M., & Lewellen, W. G. (1995). Corporate capital structure decisions: evidence from leveraged buyouts. Financial management, 76-87. CrossrefGoogle Scholar
Ross, S. A. (1977). The determination of financial structure: the incentive-signalling approach. The bell journal of economics, 23-40. CrossrefGoogle Scholar
Rozeff, M. S. (1982). Growth, beta and agency costs as determinants of dividend payout ratios. Journal of financial Research, 5(3), 249-259. CrossrefGoogle Scholar
Ruch, G. W., & Taylor, G. (2015). Accounting conservatism: A review of the literature. Journal of accounting literature, 34(1), 17-38. CrossrefGoogle Scholar
Sa'diyah, C., & Widagdo, B. (2022). Financial distress, dividend policy, rgec and earning per share. Trikonomika, 21(1), 37-45. CrossrefGoogle Scholar
Saputri, L., & Asrori, A. (2019). The effect of leverage, liquidity and profitability on financial distress with the effectiveness of the audit committee as a moderating variable. Accounting Analysis Journal, 8(1), 38-44.
Sari, W. P. (2020). The effect of financial distress and growth opportunities on accounting conservatism with litigation risk as moderated variables in manufacturing companies listed on BEI. Budapest International Research and Critics Institute (BIRCI-Journal): Humanities and Social Sciences, 3(1), 588-597. CrossrefGoogle Scholar
Shahwan, T. M., & Habib, A. M. (2020). Does the efficiency of corporate governance and intellectual capital affect a firm's financial distress? Evidence from Egypt. Journal of intellectual capital, 21(3), 403-430. CrossrefGoogle Scholar
Stein, J. (2003). Agency, information and corporate investment. Handbook of the Economics of Finance, 1. CrossrefGoogle Scholar
Sunder, J., Sunder, S. V., & Zhang, J. (2018). Balance sheet conservatism and debt contracting. Contemporary accounting research, 35(1), 494-524. CrossrefGoogle Scholar
Suranta, E., Satrio, M. A. B., & Midiastuty, P. P. (2023). Effect of Investment, Free Cash Flow, Earnings Management, Interest Coverage Ratio, Liquidity, and Leverage on Financial Distress. Ilomata International Journal of Tax and Accounting, 4(2), 283-295. CrossrefGoogle Scholar
Susanti, N., Latifa, I., & Sunarsi, D. (2020). The effects of profitability, leverage, and liquidity on financial distress on retail companies listed on Indonesian Stock Exchange. Jurnal Ilmiah Ilmu Administrasi Publik, 10(1), 45-52. CrossrefGoogle Scholar
Tan, L. (2013). Creditor control rights, state of nature verification, and financial reporting conservatism. Journal of accounting and Economics, 55(1), 1-22. CrossrefGoogle Scholar
Tay, R. (2017). Correlation, variance inflation and multicollinearity in regression model. Journal of the Eastern Asia Society for Transportation Studies, 12, 2006-2015.
Turaboğlu, T. T., Erkol, A. Y., & Topaloğlu, E. E. (2017). Financial distress and capital structure decision: An Aplication on BIST 100 Firms. Business and Economics Research Journal, 8(2), 247-258.
[Record #1096 is using a reference type undefined in this output style.]
Wangsih, I. C., Yanti, D. R., Yohana, Y., Kalbuana, N., & Cahyadi, C. I. (2021). Influence of leverage, firm size, and sales growth on financial distress. International Journal of Economics, Business and Accounting Research (IJEBAR), 5(4). CrossrefGoogle Scholar
Watts, R. L. (2003). Conservatism in accounting part I: Explanations and implications. Accounting horizons, 17(3), 207-221. CrossrefGoogle Scholar
Watts, R. L., & Zimmerman, J. L. (1990). Positive accounting theory: a ten year perspective. Accounting review, 131-156. CrossrefGoogle Scholar
Yazdanfar, D., & Öhman, P. (2020). Financial distress determinants among SMEs: empirical evidence from Sweden. Journal of Economic Studies, 47(3), 547-560. CrossrefGoogle Scholar
Younas, N., UdDin, S., Awan, T., & Khan, M. Y. (2021). Corporate governance and financial distress: Asian emerging market perspective. Corporate Governance: The International Journal of Business in Society, 21(4), 702-715. CrossrefGoogle Scholar
Yusnaini, A. M., & Tarmizi, H. (2019). The Effect of Financial Distress, Litigation Risk, and Growth Opportunities on Accounting Conservatism With Leverage As Modering in Manufacturing Companies Listed in Indonesia Stock Exchange. International Journal of Public Budgeting, Accounting and Finance, 2(3), 1-13.
Zhang, J. (2008). The contracting benefits of accounting conservatism to lenders and borrowers. Journal of accounting and Economics, 45(1), 27-54. CrossrefGoogle Scholar
Zhang, N., Andrighetto, G., Ottone, S., Ponzano, F., & Steinmo, S. (2016). " Willing to pay?" tax compliance in Britain and Italy: An experimental analysis. PloS one, 11(2), e0150277. CrossrefGoogle Scholar
Zhang, W. (2015). R&D investment and distress risk. Journal of Empirical Finance, 32, 94-114. CrossrefGoogle Scholar
Zhong, Y., & Li, W. (2017). Accounting conservatism: A literature review. Australian Accounting Review, 27(2), 195-213. CrossrefGoogle Scholar