The relevance of profit and conservatism in times of crisis: the case of Brazil
International Journal of Development Research
The relevance of profit and conservatism in times of crisis: the case of Brazil
Received 27th September, 2021; Received in revised form 11th October, 2021; Accepted 20th November, 2021; Published online 28th December, 2021
Copyright © 2021, Mônica de Souza Lima et al. 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.
This study deals with the relevance of earnings, accounting conservatism and the consequences of financial crises between 1995 and 2017. It aimed to measure the presence of conservatism in periods of financial crisis, under the concepts of Basu (1997), in the Brazilian market in periods with and without crisis, evaluating Brazilian companies listed on B3 between the years 1995 and 2017, and whether the level of conservatism positively influences the profit relevance in periods of crisis. The research is characterized as descriptive research and points out that the evidence found as from the proposed methodology, did not show sufficient results capable of being conclusive in relation to the relevance of profit and the presence of conservatism in periods of macroeconomic crisis.
