Audit Knowledge and Accounting Conservatism: A Case of Executives’ Vocational Learning and Application
Bin Li 1 * , Muze Peng 1, Yingkui Zhang 1
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1 School of Economics and Management, Beijing University of Chemical Technology, Chaoyang District, Beijing 100029, P.R. China
* Corresponding Author

Abstract

This study examines the relation of audit knowledge and accounting conservatism based on the case of executives’ vocational learning and application. The empirical results reveal the evidence of a negative relation between executives’ audit knowledge and accounting conservatism. Further analysis indicates that the impact of executives’ audit knowledge on accounting conservatism is only robust in companies without CEO duality. The results imply that companies with executives who have audit knowledge may adopt aggressive accounting policy and reduce the accounting conservatism of financial reports.

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This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Article Type: Research Article

https://doi.org/10.12973/eurasia.2017.01043a

EURASIA J Math Sci Tech Ed, 2017 - Volume 13 Issue 9, pp. 6101-6112

Publication date: 23 Aug 2017

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