Does Accounting Conservatism Impede Corporate Innovation ? *

@inproceedings{Chang2013DoesAC,
  title={Does Accounting Conservatism Impede Corporate Innovation ? *},
  author={Xin Chang and Jun-Koo Kang},
  year={2013}
}
We examine the impact of accounting conservatism on corporate innovation. We find that firms that exhibit a higher degree of accounting conservatism generate fewer patents. Their patents also generate fewer citations and lower economic benefits. These effects of accounting conservatism on innovation are more pronounced when firms’ need for innovation is higher, when the product development cycle is longer, when managers have higher pay sensitivity to accounting performance, or when managers are… Expand

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