Conservative Bias

2020 ◽  
Vol 48 (4) ◽  
pp. 605-610
Author(s):  
Kathryn S. Olmsted
Keyword(s):  
Conservative Bias

Earnings Management, Litigation Risk, and Asymmetric Audit Fee Responses

2006 ◽  
Vol 25 (1) ◽  
pp. 85-98 ◽  
Author(s):  
Lawrence J. Abbott ◽  
Susan Parker ◽  
Gary F. Peters
Keyword(s):  
Earnings Management ◽  
High Growth ◽  
Audit Fees ◽  
Discretionary Accruals ◽  
Litigation Risk ◽  
Audit Fee ◽  
Growth Firms ◽  
Price Earnings Ratio ◽  
Year 2000 ◽  
Conservative Bias

This study examines the association between audit fees and earnings management, using publicly available fee data. We hypothesize that, due to asymmetric litigation effects, audit fees decrease (increase) with a client's risk of income-decreasing (increasing) earnings management risk. We also hypothesize that the positive relation between income-increasing earnings management risk and audit fees is heightened for clients that are high-growth firms. We test our hypotheses with a sample of 429 public, non-regulated, Big 5 audited companies, using fee data for the year 2000. We find that downward earnings management risk, as estimated by negative (i.e., income-decreasing) discretionary accruals, is associated with lower audit fees. We also document that upward earnings management risk, as estimated by positive discretionary accruals, is associated with higher audit fees and that the interaction of this risk with an industry-adjusted price-earnings ratio has an incrementally significant, positive effect on fees. We interpret our findings as consistent with a conservative bias on the part of auditors. The conservative bias arises from asymmetric litigation risk in which income-increasing discretionary accruals exhibit greater expected litigation costs than income-decreasing discretionary accruals (Simunic and Stein 1996; Palmrose and Scholz 2004; Palmrose et al. 2004; Richardson et al. 2002; Heninger 2001).

Letters to the Editor

PEDIATRICS ◽  
1980 ◽  
Vol 66 (3) ◽  
pp. 482-482
Author(s):  
J. Swanson
Keyword(s):  
Laboratory Test ◽  
Test Procedure ◽  
Drug Trial ◽  
Short Term ◽  
Letters To The Editor ◽  
Stimulant Drug ◽  
Stimulant Drugs ◽  
Hyperactive Children ◽  
Initial Work ◽  
Conservative Bias

In their letter, McLaughlin and Tso have misinterpreted the purpose of the short-term diagnostic drug trial we have proposed (Pediatrics 61:21, 1978). We developed our laboratory test procedure to screen out potential adverse responders, in order to prevent their mistreatment with stimulant drugs. We feel that this conservative bias is necessary, since there has been general agreement since Bradley's (1939, 1950) initial work that not all behaviorally hyperactive children have a favorable response to stimulant drug.1,2

US Supreme Court-packing unlikely

2019 ◽  
Keyword(s):  
Supreme Court ◽  
Constitutional Change ◽  
Content Type ◽  
White House ◽  
Presidential Nomination ◽  
The Supreme Court ◽  
Us Supreme Court ◽  
Lower Courts ◽  
Conservative Bias

Significance Rubio's move comes as several candidates for the Democratic Party's 2020 presidential nomination are discussing 'packing' the Supreme Court -- adding justices intended to nullify the perceived long-term conservative bias of the Court following Trump-era appointments. Impacts A constitutional change to limit the Supreme Court to nine justices is unlikely: amendments are purposely hard. Court-packing would not guarantee 'Democratic' or 'Republican' rulings: much depends on the case and how justices feel. Packing the courts would likely increase their politicisation, and potentially slow their deliberative capacity. If Trump wins a second term and Republicans keep the Senate, they will appoint further conservative justices. If the Democrats win the White House and Senate in 2020, they might 'pack' the lower courts.

scholarly journals Why Were Biological Analogies in Economics “A Bad Thing”? Edith Penrose's Battles against Social Darwinism and McCarthyism

2011 ◽  
Vol 24 (4) ◽  
pp. 465-485 ◽  
Author(s):  
Clement Levallois
Keyword(s):  
United States ◽  
Cultural Values ◽  
Evolutionary Biology ◽  
Theory Of The Firm ◽  
Social Darwinism ◽  
Historical Case ◽  
Science And Values ◽  
Edith Penrose ◽  
Conservative Bias

ArgumentThe heuristic value of evolutionary biology for economics is still much under debate. We suggest that in addition to analytical considerations, socio-cultural values can well be at stake in this issue. To demonstrate it, we use a historical case and focus on the criticism of biological analogies in the theory of the firm formulated by economist Edith Penrose in postwar United States. We find that in addition to the analytical arguments developed in her paper, she perceived that biological analogies were suspect of a conservative bias – as in social Darwinism. We explain this perception by documenting the broader context of Edith Penrose's personal and professional evolution, from her student days at Berkeley to her defense of Owen Lattimore against McCarthyism. We conclude that in the case under study at least, science and values were certainly intertwined in accounting for her skepticism towards biological analogies – insight we develop in the conclusion about today's relationships between biology and economics.

scholarly journals The conservative bias of life scientists

2019 ◽  
Vol 29 (17) ◽  
pp. 2970-2971
Author(s):  
Paul S. Katz
Keyword(s):  
Conservative Bias

scholarly journals Enhancement and the Conservative Bias

2016 ◽  
Vol 30 (3) ◽  
pp. 339-356
Author(s):  
Ben Davies
Keyword(s):  
Conservative Bias
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