Jordan Journal of Business Administration | 2026
Authors: Kimouche B.
DOI: 10.35516/jjba.v22i1.905
Journal: Jordan Journal of Business Administration
Year: 2026
Publisher: University of Jordan,Deanship of Scientific Research
Document Type: Article
Open Access: All Open Access; Gold Open Access
Cited by: 0
Several studies argued that companies are more conservative during scandals and downturns as a means to provide information about uncertain situations and big economic losses, and that more conservative companies experience fewer difficult times due to recessions. Therefore, this paper aims to investigate the impact of the Covid-19 pandemic on accounting conservatism in Algerian companies. The research methodology relies on the model of Ball and Shivakumar (2005) as a measure of accounting conservatism, then introduces the Covid-19 pandemic as a dummy variable, and finally controls the model by company size, leverage, and return on equity. The study included 600 firm-year observations for 150 Algerian companies from 2018 to 2021, where the study period was divided into the pre-Covid-19 period (2018-2019) and the Covid-19 period (2020-2021). The results indicate that Algerian companies are generally conservative. However, they showed a very low level of conservatism during the Covid-19 period compared to very conservative financial information during the pre-Covid-19 period. Overall, this study has empirical implications for accounting standard-setters, auditors, and institutional regulators. © 2026 DSR Publishers/The University of Jordan. All Rights Reserved. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY-NC) license (https://creativecommons.org/licenses/by-nc/4.0/)
Accounting conservatism; Algerian companies; Covid-19 pandemic; Economic crisis