Kuwait-University-Journal-of-Law-header
Search
Journal of Law

Previous Issues

Advance Search
Year : From To Vol
Issue Discipline:
Author

Volume :38 Issue : 144 2012      Add To Cart                                                                    Download

The Accounting Conservatism and Earnings Quality in Bahrain Stock Exchange

Auther : Dr. Allam M. Hamdan

     The study aims at measuring level of accounting conservatism when preparing financial reports by companies listed in Bahrain Stock Exchange (BSE). In addition, the study examines the factors that affect the level of accounting conservatism in those companies. To achieve these goals, two different methods were used to measure conservatism level and the factors influencing it. The methods are: Basu (1997) model and Book-to-Market approach. The sample of the study comprises of (50) companies listed in (BSE) during the period 2005-2008. Findings of the study showed that the public sector of regulating accounting standards succeeded in forcing Bahrain's companies to present a reasonable level of accounting conservatism. The study also found out that the financial reports of big companies were conservative, while those of the small ones were not. In addition, the debt contracts left an impact upon financial reports of accounting conservatism. Thus, companies with higher debts were more conservative than those of lower ones. Moreover, the financial reports of the service sector in Bahrain Stock Exchange were the most conservative. The findings of the study showed how significant the accounting information in Bahrain which is a good catalyst for investment in this emerging market. Regarding earnings quality, the study didn't find any important statistical significant on quality of earnings of companies listed in (BSE) and there was no relation between accounting conservatism and earnings quality.

Journal of Law
Journal of Law

You are Visitor No.

75623

Journal of Law
Journal of Law
Tell your friendsJournal of Law
Journal of Law

Last Updated

May 18, 2017

Journal of Law
Journal of Law
Journal of Law

Please enter your email Here to receive our news

Journal of Law