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Yi Zhang

  • Title: Miss
  • Position: PhD Student - Department of Accounting and Corporate Governance

Student information

  • Principal supervisor: Dr Meiting Lu
  • Associate supervisor: Dr Kay Chan
  • Date of submission: 01/01/2000
  • Thesis title: Economic Determinants of Asymmetric Timeliness in Real Activities
  • Abstract: Operating cash flows (CFO), based on actual cash transactions, are unlikely to be affected by accounting choices. CFO asymmetric timeliness refers to the extent to which cash flows reflect bad news more quickly than good news. While prior literature focuses on asymmetric timeliness of earnings as a result of accrual accounting choices, there has been limited investigation of CFO asymmetric timeliness. This study proposes a new explanation of CFO asymmetric timeliness based on the demand of conservatism, and examines how the conservatism demands arising from contracting, litigation, regulation and taxation affect CFO asymmetric timeliness. The results provide important implications for cash flow forecasting and securities valuation.