Conservatism in Accounting

The manuscript measures accounting conservatism in Indian US and Japanese companies using Book- to Market ratio. It also identifies the industry-wise variations in accounting conservatism in above countries. It explains the accounting choices through which conservatism is practised by Indian companies. It also focuses on four explanations for existence of conservatism viz. contracting litigation taxation and regulation. The manuscript also explains the relevance of the accounting conservatism by evidencing that it is used by investors in decision making.