Submit to this Journal Review for this Journal Propose a Special Issue

Article Menu

Share Help Cite Discuss in SciProfiles

Open AccessArticle

Peer-Review Record

Exploring the Implications of the Managerial Choice of Accounting Conservatism Strategy on the Financial Growth of Saudi Banks

J. Risk Financial Manag. 2025, 18(7), 356; https://doi.org/10.3390/jrfm18070356

by Salih Hamid Adam¹

, Nasareldeen Hamed Ahmed Alnor^2,*

, Mozamil Awad Taha¹, Ebrahim Mohammed Al-Matari^2,3

and Ibrahim Ahmed Elamin Eltahir^4,5

Reviewer 1:

Early Ridho Kismawadi

Reviewer 2:

Anderes Gui

Reviewer 3: Anonymous

J. Risk Financial Manag. 2025, 18(7), 356; https://doi.org/10.3390/jrfm18070356

Submission received: 3 April 2025 / Revised: 17 June 2025 / Accepted: 27 June 2025 / Published: 29 June 2025

(This article belongs to the Section Banking and Finance)

Round 1

Reviewer 1 Report

Comments and Suggestions for Authors

The introduction mentions the importance of accounting conservatism and litigation risk, but does not explicitly identify specific research gaps to be addressed. Start with the big picture of the importance of reliable financial reporting in the banking sector, especially in emerging markets like Saudi Arabia. Connect this to global (e.g., international regulatory pressures such as IFRS) and local (e.g., the economic transformation of Vision 2030).
Although the research focuses on Saudi banks, the local context (e.g., the SAMA regulations, Vision 2030, or the characteristics of the banking market) is only mentioned in general without depth. Avoid lengthy explanations of accounting conservatism at the beginning. Instead, briefly define it and relate it directly to its impact on banking, such as investor confidence or managerial decision-making.
The introduction tends to be repetitive in explaining accounting conservatism and litigation risk, thus losing focus on why these relationships are important to research. Emphasize specific research gaps that have not been addressed by previous literature. For example, is there a lack of studies on the effects of litigation risk moderation on the relationship between conservatism and financial growth in emerging markets? Or has the previous literature focused too much on developed markets?
There is no explicit statement on how this research will make a new contribution to the literature or practice. Reinforce the relevance of the Saudi context by mentioning unique factors, such as the role of the Saudi Arabian Monetary Authority (SAMA), the adoption of IFRS, or the structure of the banking market dominated by large and Islamic banks. This will add to the appeal of the research for international readers.
Some sentences are too general or normative (e.g., "protect stakeholders from excessively optimistic financial statements") without strong theoretical support. Formulate more focused research questions and avoid repetition. The purpose of the research should be clearly articulated as a bridge to the hypothesis in the next section.
Close the introduction with a brief statement of the theoretical and practical contributions, as well as an overview of the paper's structure to guide the reader.
The results section (Tables 2 and 3, as well as regression equations) is presented with basic statistics (descriptive, correlated, and regressive), but the narrative explaining the main findings is too brief. For example, the statement that accounting conservatism has a "mixed impact" is not elaborated in enough detail to explain why or how this impact occurs. Provide a more detailed narrative explanation for each key outcome, focusing on statistical and economic significance. Explain what "mixed impact" means specifically, such as whether conservatism increases growth in some banks but hinders in others, and why.
There is no explanation for how these findings are relevant to the characteristics of Saudi banks (e.g., Islamic vs. conventional banks, large vs. small banks). Connect the findings to the unique characteristics of Saudi banks, such as bank size, ownership (government vs. private), or bank type (sharia vs. conventional). This will increase the relevance of the findings to international readers.
The table is well presented, but there is no narrative highlighting the most significant findings or additional visualizations (e.g., graphs) to clarify the relationships between variables. Include a simple graph or visualization to illustrate the relationship between variables, such as an interaction graph showing how litigation risk moderates the effects of conservatism on financial growth.
Although it is mentioned that robustnes tests were performed, the details are not explained, making it difficult to assess the strength of the findings. Provide details about the robustnes tests performed (e.g., tests with alternative models, sub-samples, or different time periods) to convince the reader of the strength of the findings.
Link the findings to the transformation of the Saudi economy, such as the diversification of bank revenues or the expansion of the non-oil sector, to increase the relevance of the research.
Discussions of managerial and regulatory implications (e.g., "balanced strategy" or "increased transparency") are generic and less specific to the Saudi context. There is no deep connection to local policies such as the SAMA regulation or the transformation of the Vision 2030. Explain why accounting conservatism has a mixed impact, taking into account factors such as bank heterogeneity, local regulation, or market dynamics. Connect these findings to theories (e.g., agency theory or signaling theory).
The findings were compared with the literature on a limited basis, with no in-depth discussion of whether these results were consistent, contradictory, or added new insights compared to previous studies. Compare the findings explicitly with previous studies, both supportive and contradictory, to show how this study adds new insights.
Suggestions such as "fortify governance" or "tailored guidelines" do not provide specific guidance on how banks can implement them in practice. Avoid general advice such as "balanced strategy" and provide specific recommendations that can be applied by bank managers, regulators, or investors in the Saudi context.
Although litigation risk is a moderator variable, the discussion of how this risk affects the relationship between conservatism and financial growth is less in-depth, especially in the context of Saudi law. Discuss in depth how litigation risk moderates the relationship between conservatism and growth, taking into account the relatively conservative Saudi legal environment compared to the Western market.
It does not have an explicitly stand-alone Conclusion section, but some elements of the conclusion can be found in the Discussion (page 9) and Limitation of Study and Future Suggestions (page 9) sections. However, these elements are not well organized as a cohesive conclusion.
There is no comprehensive summary that integrates key findings (e.g., the mixed impact of accounting conservatism and the moderation effect of litigation risk) to provide a strong final picture. Start with a brief summary of the research results, highlighting the mixed impact of accounting conservatism on financial growth and the role of litigation risk moderation. Avoid repeating technical details from the Results section, and focus on the core message.
Managerial and regulatory advice (e.g., "balanced approach" or "enhance financial reporting guidelines") are less specific and do not sufficiently highlight the relevance of the Saudi context, such as the SAMA regulation or Vision 2030. Explain how this research contributes to the accounting literature and banking practice, with an emphasis on the uniqueness of the Saudi context. Connect practical implications to local needs, such as SAMA regulations or the Vision 2030 agenda.
The limitations section mentions factors such as risk tolerance and company culture, but does not explain how these limitations affect the interpretation of results or the reliability of findings. Briefly mention the limitations, but explain how these limitations affect the interpretation of the findings. Avoid generic list of limitations; focus on aspects relevant to the research design or context.
Recommendations for future research (e.g., survey-based methods or causal analysis) are general and are not sufficiently related to the specific findings of this study. Propose future research that directly builds on current findings, focusing on specific aspects such as Islamic banks, regulatory dynamics, or alternative methods. Avoid overly broad suggestions.
There are no concluding statements that affirm the research contribution or leave a lasting impression on readers, which is important for a reputable journal. Conclude with a statement affirming the importance of this research and its impact on the understanding of accounting and banking, both in Saudi Arabia and globally.

Author Response

Reviewer 1:
The introduction mentions the importance of accounting conservatism and litigation risk, but does not explicitly identify specific research gaps to be addressed. Start with the big picture of the importance of reliable financial reporting in the banking sector, especially in emerging markets like Saudi Arabia. Connect this to global (e.g., international regulatory pressures such as IFRS) and local (e.g., the economic transformation of Vision 2030).	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 2
Although the research focuses on Saudi banks, the local context (e.g., the SAMA regulations, Vision 2030, or the characteristics of the banking market) is only mentioned in general without depth. Avoid lengthy explanations of accounting conservatism at the beginning. Instead, briefly define it and relate it directly to its impact on banking, such as investor confidence or managerial decision-making.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 3
The introduction tends to be repetitive in explaining accounting conservatism and litigation risk, thus losing focus on why these relationships are important to research. Emphasize specific research gaps that have not been addressed by previous literature. For example, is there a lack of studies on the effects of litigation risk moderation on the relationship between conservatism and financial growth in emerging markets? Or has the previous literature focused too much on developed markets?	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 3
There is no explicit statement on how this research will make a new contribution to the literature or practice. Reinforce the relevance of the Saudi context by mentioning unique factors, such as the role of the Saudi Arabian Monetary Authority (SAMA), the adoption of IFRS, or the structure of the banking market dominated by large and Islamic banks. This will add to the appeal of the research for international readers.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 4
Some sentences are too general or normative (e.g., "protect stakeholders from excessively optimistic financial statements") without strong theoretical support. Formulate more focused research questions and avoid repetition. The purpose of the research should be clearly articulated as a bridge to the hypothesis in the next section.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 2
Close the introduction with a brief statement of the theoretical and practical contributions, as well as an overview of the paper's structure to guide the reader.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 3
The results section (Tables 2 and 3, as well as regression equations) is presented with basic statistics (descriptive, correlated, and regressive), but the narrative explaining the main findings is too brief. For example, the statement that accounting conservatism has a "mixed impact" is not elaborated in enough detail to explain why or how this impact occurs. Provide a more detailed narrative explanation for each key outcome, focusing on statistical and economic significance. Explain what "mixed impact" means specifically, such as whether conservatism increases growth in some banks but hinders in others, and why.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 7
There is no explanation for how these findings are relevant to the characteristics of Saudi banks (e.g., Islamic vs. conventional banks, large vs. small banks). Connect the findings to the unique characteristics of Saudi banks, such as bank size, ownership (government vs. private), or bank type (sharia vs. conventional). This will increase the relevance of the findings to international readers.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 9
The table is well presented, but there is no narrative highlighting the most significant findings or additional visualizations (e.g., graphs) to clarify the relationships between variables. Include a simple graph or visualization to illustrate the relationship between variables, such as an interaction graph showing how litigation risk moderates the effects of conservatism on financial growth.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 7-8
Although it is mentioned that robustnes tests were performed, the details are not explained, making it difficult to assess the strength of the findings. Provide details about the robustnes tests performed (e.g., tests with alternative models, sub-samples, or different time periods) to convince the reader of the strength of the findings	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 7-8
Link the findings to the transformation of the Saudi economy, such as the diversification of bank revenues or the expansion of the non-oil sector, to increase the relevance of the research.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 9
Discussions of managerial and regulatory implications (e.g., "balanced strategy" or "increased transparency") are generic and less specific to the Saudi context. There is no deep connection to local policies such as the SAMA regulation or the transformation of the Vision 2030. Explain why accounting conservatism has a mixed impact, taking into account factors such as bank heterogeneity, local regulation, or market dynamics. Connect these findings to theories (e.g., agency theory or signaling theory).	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 10
The findings were compared with the literature on a limited basis, with no in-depth discussion of whether these results were consistent, contradictory, or added new insights compared to previous studies. Compare the findings explicitly with previous studies, both supportive and contradictory, to show how this study adds new insights.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 9
Suggestions such as "fortify governance" or "tailored guidelines" do not provide specific guidance on how banks can implement them in practice. Avoid general advice such as "balanced strategy" and provide specific recommendations that can be applied by bank managers, regulators, or investors in the Saudi context.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 11
Although litigation risk is a moderator variable, the discussion of how this risk affects the relationship between conservatism and financial growth is less in-depth, especially in the context of Saudi law. Discuss in depth how litigation risk moderates the relationship between conservatism and growth, taking into account the relatively conservative Saudi legal environment compared to the Western market.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	10 Please refer to page no.
It does not have an explicitly stand-alone Conclusion section, but some elements of the conclusion can be found in the Discussion (page 9) and Limitation of Study and Future Suggestions (page 9) sections. However, these elements are not well organized as a cohesive conclusion.		Please refer to page no. 10
There is no comprehensive summary that integrates key findings (e.g., the mixed impact of accounting conservatism and the moderation effect of litigation risk) to provide a strong final picture. Start with a brief summary of the research results, highlighting the mixed impact of accounting conservatism on financial growth and the role of litigation risk moderation. Avoid repeating technical details from the Results section, and focus on the core message.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 1
Managerial and regulatory advice (e.g., "balanced approach" or "enhance financial reporting guidelines") are less specific and do not sufficiently highlight the relevance of the Saudi context, such as the SAMA regulation or Vision 2030. Explain how this research contributes to the accounting literature and banking practice, with an emphasis on the uniqueness of the Saudi context. Connect practical implications to local needs, such as SAMA regulations or the Vision 2030 agenda.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 11
The limitations section mentions factors such as risk tolerance and company culture, but does not explain how these limitations affect the interpretation of results or the reliability of findings. Briefly mention the limitations, but explain how these limitations affect the interpretation of the findings. Avoid generic list of limitations; focus on aspects relevant to the research design or context.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 11
Recommendations for future research (e.g., survey-based methods or causal analysis) are general and are not sufficiently related to the specific findings of this study. Propose future research that directly builds on current findings, focusing on specific aspects such as Islamic banks, regulatory dynamics, or alternative methods. Avoid overly broad suggestions.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 12
There are no concluding statements that affirm the research contribution or leave a lasting impression on readers, which is important for a reputable journal. Conclude with a statement affirming the importance of this research and its impact on the understanding of accounting and banking, both in Saudi Arabia and globally.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 10-11


Reviewer 2
The topic is interesting and well written. However, I think authors should concentrate the following suggestions to improve the manuscript for making the manuscript more accessible to the readers.	Thank you so much for your valuable comments, we would like to inform you that your comments have been addressed as provided in the text of paper.
- You need to justify the research gap more clearly to make it unique and interesting for readers.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 3
- Your research problem is not clearly justified, which may reduce the perceived importance of your study to readers. Therefore, I suggest incorporating research problem based on previous studies to highlight the significance of your work.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 2
- You presented the implications of your study first and the research questions at the end, which may confuse readers regarding your findings and their relevance. Therefore, I recommend rearranging the structure by placing the research questions earlier—separately—and presenting the potential implications of the findings at the end.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 4
Literature review - In this section, I observed that you described the problem statement. However, you should compare and justify your study in relation to previous research to demonstrate how your work differs and contributes to the existing literature. Therefore, I recommend adding this justification in the introduction, and including a review of previous studies in Section Two (Literature review), highlighting how your study is unique and addresses an unexplored area. - In Section 2.1, you justified the relationship between growth opportunities and financial growth. However, the citations you used are outdated. Therefore, you should incorporate findings with citations from more recent studies to enhance the relevance and appeal of your discussion for readers. - Please cite some recent studies in Section 2.2 (from 2024 or 2025) to make your review more up to date	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 4
Conclusion - In the conclusion section, you discussed your findings to highlight their significance. However, you need to justify your results by comparing them with findings from previous studies and demonstrate how your contributions are novel in comparison.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 10
Implication: - In this section, please separately practical and theoretical implications of your findings to make your study more comprehensive to the readers.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 11




Reviewer 3
Thanks for assigning the manuscript “Exploring the implications of the managerial choice of accounting conservatism strategy on the financial growth of Saudi banks” for review. I have examined the manuscript and have the following observations:	Thank you so much for your valuable comments, we would like to inform you that your comments have been addressed as provided in the text of paper.
The introduction clearly outlines the basic requirements to begin the study. However, to improve clarity, the authors could consider a short paragraph succinctly summarising the research aims. This could help readers quickly grasp the purpose of the study. Additionally, the authors should clearly outline key research questions and objectives of the study.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 2-4
The literature review is nicely crafted and presented. The authors should clearly state what is missing in the current literature and how this study contributes to existing literature.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 4
3.2. Study population: The study population represented in all the banks in KAS. (It will be KSA, I believe, the authors need to correct it.) Line 29, the study data was collected through report of several banks in kas ((It will be KSA, I believe, the authors need to correct it). Line 230: “To answer for Study questions and test its hypotheses.” The authors should further explain this line, as the placement and meaning of this line are still not clear. · Tools and information sources: This section needs some more explanation about the process used by the authors to collect and process the data for analysis. · The statistical processing used: It is advisable to change the heading to “Tools of Data Analysis”	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 6-7
Research Methodology: This section is nicely drafted. A few questions need to be further explained: The authors mentioned that a desk survey was conducted. How was this survey conducted, and what was the process behind conducting such a survey? The authors have mentioned that the data was collected through reports of several banks. If possible, it is advisable to provide a brief description of the type of banks surveyed by the authors.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.
Line 264: Pearson Correlation matrix of coefficients of regress model (Kindly write the full name, regression model)	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	8 Please refer to page no.
Line 268: From the analysis of above Table,. we found the (remove full stop) , Line 269: in model is 0.809 That Means strong relation (That should start from small t). There are many such errors. Authors are required to proofread it thoroughly and correct it.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 8
Line 276: problem in models abut model (it will be “about”).	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 9
Line 278: T-test there are all dep and control variables (What is dep here?) I believe it will be dependent variable. The authors should not use such abbreviations.	Thank you so much for your valuable comment. Your comments have been addressed.	Please refer to page no. 7
Line 280: ,Means (remove comma and M should be small).	Thank you so much for your valuable comment. Your comments have been addressed.	Please refer to page no. 7
Line 281: Conservation (AC) , TA,TC) and and Growth Opportunities (GO)). (delete repeated and, also the extra bracket.	Thank you so much for your valuable comment. Your comments have been addressed.	Please refer to page no. 7
Since regression analysis has been used in the study so it is advisable to present ANOVA results of the variables. The authors should also present the regression results of the variables in a more detailed manner.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 7-9
Regression tables, ANOVA tables should be provided in their standard format, which is generally used in scientific research publications.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 7-9
The authors have presented the Estimation Equation at the end. The authors should provide the model specification in a more detailed manner. It is also required to present the model specification.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 7-9
The authors are advised to include a discussion section that includes the results of each element and compares them with the previously published articles. This addition would help readers more conveniently understand the outcomes of the present study.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 9
The authors should locate the study's implications before the conclusion based on practical, theoretical, policy, and societal implications.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 10
The conclusion section should focus on limitations and future directions.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 11
There are multiple writing and grammar errors in many statements. The authors should proofread the entire manuscript for such errors.	Thank you so much for your valuable comment. Your comments have been addressed.	Please refer to wholly paper.

Reviewer 2 Report

Comments and Suggestions for Authors

The topic is interesting and well written. However, I think authors should concentrate the following suggestions to improve the manuscript for making the manuscript more accessible to the readers.

- You need to justify the research gap more clearly to make it unique and interesting for readers.

- Your research problem is not clearly justified, which may reduce the perceived importance of your study to readers. Therefore, I suggest incorporating research problem based on previous studies to highlight the significance of your work.

- You presented the implications of your study first and the research questions at the end, which may confuse readers regarding your findings and their relevance. Therefore, I recommend rearranging the structure by placing the research questions earlier—separately—and presenting the potential implications of the findings at the end.

Literature review

- In this section, I observed that you described the problem statement. However, you should compare and justify your study in relation to previous research to demonstrate how your work differs and contributes to the existing literature. Therefore, I recommend adding this justification in the introduction, and including a review of previous studies in Section Two (Literature review), highlighting how your study is unique and addresses an unexplored area.

- In Section 2.1, you justified the relationship between growth opportunities and financial growth. However, the citations you used are outdated. Therefore, you should incorporate findings with citations from more recent studies to enhance the relevance and appeal of your discussion for readers.

- Please cite some recent studies in Section 2.2 (from 2024 or 2025) to make your review more up to date.

Conclusion

- In the conclusion section, you discussed your findings to highlight their significance. However, you need to justify your results by comparing them with findings from previous studies and demonstrate how your contributions are novel in comparison.

Implication:

- In this section, please separately practical and theoretical implications of your findings to make your study more comprehensive to the readers.

Comments for author File: Comments.pdf

Author Response

Reviewer 1:
The introduction mentions the importance of accounting conservatism and litigation risk, but does not explicitly identify specific research gaps to be addressed. Start with the big picture of the importance of reliable financial reporting in the banking sector, especially in emerging markets like Saudi Arabia. Connect this to global (e.g., international regulatory pressures such as IFRS) and local (e.g., the economic transformation of Vision 2030).	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 2
Although the research focuses on Saudi banks, the local context (e.g., the SAMA regulations, Vision 2030, or the characteristics of the banking market) is only mentioned in general without depth. Avoid lengthy explanations of accounting conservatism at the beginning. Instead, briefly define it and relate it directly to its impact on banking, such as investor confidence or managerial decision-making.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 3
The introduction tends to be repetitive in explaining accounting conservatism and litigation risk, thus losing focus on why these relationships are important to research. Emphasize specific research gaps that have not been addressed by previous literature. For example, is there a lack of studies on the effects of litigation risk moderation on the relationship between conservatism and financial growth in emerging markets? Or has the previous literature focused too much on developed markets?	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 3
There is no explicit statement on how this research will make a new contribution to the literature or practice. Reinforce the relevance of the Saudi context by mentioning unique factors, such as the role of the Saudi Arabian Monetary Authority (SAMA), the adoption of IFRS, or the structure of the banking market dominated by large and Islamic banks. This will add to the appeal of the research for international readers.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 4
Some sentences are too general or normative (e.g., "protect stakeholders from excessively optimistic financial statements") without strong theoretical support. Formulate more focused research questions and avoid repetition. The purpose of the research should be clearly articulated as a bridge to the hypothesis in the next section.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 2
Close the introduction with a brief statement of the theoretical and practical contributions, as well as an overview of the paper's structure to guide the reader.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 3
The results section (Tables 2 and 3, as well as regression equations) is presented with basic statistics (descriptive, correlated, and regressive), but the narrative explaining the main findings is too brief. For example, the statement that accounting conservatism has a "mixed impact" is not elaborated in enough detail to explain why or how this impact occurs. Provide a more detailed narrative explanation for each key outcome, focusing on statistical and economic significance. Explain what "mixed impact" means specifically, such as whether conservatism increases growth in some banks but hinders in others, and why.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 7
There is no explanation for how these findings are relevant to the characteristics of Saudi banks (e.g., Islamic vs. conventional banks, large vs. small banks). Connect the findings to the unique characteristics of Saudi banks, such as bank size, ownership (government vs. private), or bank type (sharia vs. conventional). This will increase the relevance of the findings to international readers.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 9
The table is well presented, but there is no narrative highlighting the most significant findings or additional visualizations (e.g., graphs) to clarify the relationships between variables. Include a simple graph or visualization to illustrate the relationship between variables, such as an interaction graph showing how litigation risk moderates the effects of conservatism on financial growth.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 7-8
Although it is mentioned that robustnes tests were performed, the details are not explained, making it difficult to assess the strength of the findings. Provide details about the robustnes tests performed (e.g., tests with alternative models, sub-samples, or different time periods) to convince the reader of the strength of the findings	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 7-8
Link the findings to the transformation of the Saudi economy, such as the diversification of bank revenues or the expansion of the non-oil sector, to increase the relevance of the research.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 9
Discussions of managerial and regulatory implications (e.g., "balanced strategy" or "increased transparency") are generic and less specific to the Saudi context. There is no deep connection to local policies such as the SAMA regulation or the transformation of the Vision 2030. Explain why accounting conservatism has a mixed impact, taking into account factors such as bank heterogeneity, local regulation, or market dynamics. Connect these findings to theories (e.g., agency theory or signaling theory).	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 10
The findings were compared with the literature on a limited basis, with no in-depth discussion of whether these results were consistent, contradictory, or added new insights compared to previous studies. Compare the findings explicitly with previous studies, both supportive and contradictory, to show how this study adds new insights.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 9
Suggestions such as "fortify governance" or "tailored guidelines" do not provide specific guidance on how banks can implement them in practice. Avoid general advice such as "balanced strategy" and provide specific recommendations that can be applied by bank managers, regulators, or investors in the Saudi context.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 11
Although litigation risk is a moderator variable, the discussion of how this risk affects the relationship between conservatism and financial growth is less in-depth, especially in the context of Saudi law. Discuss in depth how litigation risk moderates the relationship between conservatism and growth, taking into account the relatively conservative Saudi legal environment compared to the Western market.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	10 Please refer to page no.
It does not have an explicitly stand-alone Conclusion section, but some elements of the conclusion can be found in the Discussion (page 9) and Limitation of Study and Future Suggestions (page 9) sections. However, these elements are not well organized as a cohesive conclusion.		Please refer to page no. 10
There is no comprehensive summary that integrates key findings (e.g., the mixed impact of accounting conservatism and the moderation effect of litigation risk) to provide a strong final picture. Start with a brief summary of the research results, highlighting the mixed impact of accounting conservatism on financial growth and the role of litigation risk moderation. Avoid repeating technical details from the Results section, and focus on the core message.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 1
Managerial and regulatory advice (e.g., "balanced approach" or "enhance financial reporting guidelines") are less specific and do not sufficiently highlight the relevance of the Saudi context, such as the SAMA regulation or Vision 2030. Explain how this research contributes to the accounting literature and banking practice, with an emphasis on the uniqueness of the Saudi context. Connect practical implications to local needs, such as SAMA regulations or the Vision 2030 agenda.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 11
The limitations section mentions factors such as risk tolerance and company culture, but does not explain how these limitations affect the interpretation of results or the reliability of findings. Briefly mention the limitations, but explain how these limitations affect the interpretation of the findings. Avoid generic list of limitations; focus on aspects relevant to the research design or context.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 11
Recommendations for future research (e.g., survey-based methods or causal analysis) are general and are not sufficiently related to the specific findings of this study. Propose future research that directly builds on current findings, focusing on specific aspects such as Islamic banks, regulatory dynamics, or alternative methods. Avoid overly broad suggestions.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 12
There are no concluding statements that affirm the research contribution or leave a lasting impression on readers, which is important for a reputable journal. Conclude with a statement affirming the importance of this research and its impact on the understanding of accounting and banking, both in Saudi Arabia and globally.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 10-11


Reviewer 2
The topic is interesting and well written. However, I think authors should concentrate the following suggestions to improve the manuscript for making the manuscript more accessible to the readers.	Thank you so much for your valuable comments, we would like to inform you that your comments have been addressed as provided in the text of paper.
- You need to justify the research gap more clearly to make it unique and interesting for readers.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 3
- Your research problem is not clearly justified, which may reduce the perceived importance of your study to readers. Therefore, I suggest incorporating research problem based on previous studies to highlight the significance of your work.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 2
- You presented the implications of your study first and the research questions at the end, which may confuse readers regarding your findings and their relevance. Therefore, I recommend rearranging the structure by placing the research questions earlier—separately—and presenting the potential implications of the findings at the end.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 4
Literature review - In this section, I observed that you described the problem statement. However, you should compare and justify your study in relation to previous research to demonstrate how your work differs and contributes to the existing literature. Therefore, I recommend adding this justification in the introduction, and including a review of previous studies in Section Two (Literature review), highlighting how your study is unique and addresses an unexplored area. - In Section 2.1, you justified the relationship between growth opportunities and financial growth. However, the citations you used are outdated. Therefore, you should incorporate findings with citations from more recent studies to enhance the relevance and appeal of your discussion for readers. - Please cite some recent studies in Section 2.2 (from 2024 or 2025) to make your review more up to date	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 4
Conclusion - In the conclusion section, you discussed your findings to highlight their significance. However, you need to justify your results by comparing them with findings from previous studies and demonstrate how your contributions are novel in comparison.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 10
Implication: - In this section, please separately practical and theoretical implications of your findings to make your study more comprehensive to the readers.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 11




Reviewer 3
Thanks for assigning the manuscript “Exploring the implications of the managerial choice of accounting conservatism strategy on the financial growth of Saudi banks” for review. I have examined the manuscript and have the following observations:	Thank you so much for your valuable comments, we would like to inform you that your comments have been addressed as provided in the text of paper.
The introduction clearly outlines the basic requirements to begin the study. However, to improve clarity, the authors could consider a short paragraph succinctly summarising the research aims. This could help readers quickly grasp the purpose of the study. Additionally, the authors should clearly outline key research questions and objectives of the study.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 2-4
The literature review is nicely crafted and presented. The authors should clearly state what is missing in the current literature and how this study contributes to existing literature.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 4
3.2. Study population: The study population represented in all the banks in KAS. (It will be KSA, I believe, the authors need to correct it.) Line 29, the study data was collected through report of several banks in kas ((It will be KSA, I believe, the authors need to correct it). Line 230: “To answer for Study questions and test its hypotheses.” The authors should further explain this line, as the placement and meaning of this line are still not clear. · Tools and information sources: This section needs some more explanation about the process used by the authors to collect and process the data for analysis. · The statistical processing used: It is advisable to change the heading to “Tools of Data Analysis”	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 6-7
Research Methodology: This section is nicely drafted. A few questions need to be further explained: The authors mentioned that a desk survey was conducted. How was this survey conducted, and what was the process behind conducting such a survey? The authors have mentioned that the data was collected through reports of several banks. If possible, it is advisable to provide a brief description of the type of banks surveyed by the authors.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.
Line 264: Pearson Correlation matrix of coefficients of regress model (Kindly write the full name, regression model)	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	8 Please refer to page no.
Line 268: From the analysis of above Table,. we found the (remove full stop) , Line 269: in model is 0.809 That Means strong relation (That should start from small t). There are many such errors. Authors are required to proofread it thoroughly and correct it.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 8
Line 276: problem in models abut model (it will be “about”).	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 9
Line 278: T-test there are all dep and control variables (What is dep here?) I believe it will be dependent variable. The authors should not use such abbreviations.	Thank you so much for your valuable comment. Your comments have been addressed.	Please refer to page no. 7
Line 280: ,Means (remove comma and M should be small).	Thank you so much for your valuable comment. Your comments have been addressed.	Please refer to page no. 7
Line 281: Conservation (AC) , TA,TC) and and Growth Opportunities (GO)). (delete repeated and, also the extra bracket.	Thank you so much for your valuable comment. Your comments have been addressed.	Please refer to page no. 7
Since regression analysis has been used in the study so it is advisable to present ANOVA results of the variables. The authors should also present the regression results of the variables in a more detailed manner.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 7-9
Regression tables, ANOVA tables should be provided in their standard format, which is generally used in scientific research publications.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 7-9
The authors have presented the Estimation Equation at the end. The authors should provide the model specification in a more detailed manner. It is also required to present the model specification.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 7-9
The authors are advised to include a discussion section that includes the results of each element and compares them with the previously published articles. This addition would help readers more conveniently understand the outcomes of the present study.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 9
The authors should locate the study's implications before the conclusion based on practical, theoretical, policy, and societal implications.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 10
The conclusion section should focus on limitations and future directions.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 11
There are multiple writing and grammar errors in many statements. The authors should proofread the entire manuscript for such errors.	Thank you so much for your valuable comment. Your comments have been addressed.	Please refer to wholly paper.

Reviewer 3 Report

Comments and Suggestions for Authors

Dear Editor

Thanks for assigning the manuscript “Exploring the implications of the managerial choice of accounting conservatism strategy on the financial growth of Saudi banks” for review. I have examined the manuscript and have the following observations:

The introduction clearly outlines the basic requirements to begin the study. However, to improve clarity, the authors could consider a short paragraph succinctly summarising the research aims. This could help readers quickly grasp the purpose of the study. Additionally, the authors should clearly outline key research questions and objectives of the study.
The literature review is nicely crafted and presented. The authors should clearly state what is missing in the current literature and how this study contributes to existing literature.

3.2. Study population: The study population represented in all the banks in KAS. (It will be KSA, I believe, the authors need to correct it.) Line 29, the study data was collected through report of several banks in kas ((It will be KSA, I believe, the authors need to correct it).

Line 230: “To answer for Study questions and test its hypotheses.” The authors should further explain this line, as the placement and meaning of this line are still not clear.

Tools and information sources: This section needs some more explanation about the process used by the authors to collect and process the data for analysis.
The statistical processing used: It is advisable to change the heading to “Tools of Data Analysis”

Research Methodology: This section is nicely drafted. A few questions need to be further explained: The authors mentioned that a desk survey was conducted. How was this survey conducted, and what was the process behind conducting such a survey? The authors have mentioned that the data was collected through reports of several banks. If possible, it is advisable to provide a brief description of the type of banks surveyed by the authors.
Line 264: Pearson Correlation matrix of coefficients of regress model (Kindly write the full name, regression model)
Line 268: From the analysis of above Table,. we found the (remove full stop) , Line 269: in model is 0.809 That Means strong relation (That should start from small t). There are many such errors. Authors are required to proofread it thoroughly and correct it.
Line 276: problem in models abut model (it will be “about”).
Line 278: T-test there are all dep and control variables (What is dep here?) I believe it will be dependent variable. The authors should not use such abbreviations.
Line 280: ,Means (remove comma and M should be small).
Line 281: Conservation (AC) , TA,TC) and and Growth Opportunities (GO)). (delete repeated and, also the extra bracket.
Since regression analysis has been used in the study so it is advisable to present ANOVA results of the variables. The authors should also present the regression results of the variables in a more detailed manner.
Regression tables, ANOVA tables should be provided in their standard format, which is generally used in scientific research publications.
The authors have presented the Estimation Equation at the end. The authors should provide the model specification in a more detailed manner. It is also required to present the model specification.
The authors are advised to include a discussion section that includes the results of each element and compares them with the previously published articles. This addition would help readers more conveniently understand the outcomes of the present study.
The authors should locate the study's implications before the conclusion based on practical, theoretical, policy, and societal implications.
The conclusion section should focus on limitations and future directions.

There are multiple writing and grammar errors in many statements. The authors should proofread the entire manuscript for such errors.

Best wishes to the authors.

Comments on the Quality of English Language

There are multiple writing and grammar errors in many statements. The authors should proofread the entire manuscript for such errors.

Author Response

Reviewer 1:
The introduction mentions the importance of accounting conservatism and litigation risk, but does not explicitly identify specific research gaps to be addressed. Start with the big picture of the importance of reliable financial reporting in the banking sector, especially in emerging markets like Saudi Arabia. Connect this to global (e.g., international regulatory pressures such as IFRS) and local (e.g., the economic transformation of Vision 2030).	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 2
Although the research focuses on Saudi banks, the local context (e.g., the SAMA regulations, Vision 2030, or the characteristics of the banking market) is only mentioned in general without depth. Avoid lengthy explanations of accounting conservatism at the beginning. Instead, briefly define it and relate it directly to its impact on banking, such as investor confidence or managerial decision-making.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 3
The introduction tends to be repetitive in explaining accounting conservatism and litigation risk, thus losing focus on why these relationships are important to research. Emphasize specific research gaps that have not been addressed by previous literature. For example, is there a lack of studies on the effects of litigation risk moderation on the relationship between conservatism and financial growth in emerging markets? Or has the previous literature focused too much on developed markets?	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 3
There is no explicit statement on how this research will make a new contribution to the literature or practice. Reinforce the relevance of the Saudi context by mentioning unique factors, such as the role of the Saudi Arabian Monetary Authority (SAMA), the adoption of IFRS, or the structure of the banking market dominated by large and Islamic banks. This will add to the appeal of the research for international readers.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 4
Some sentences are too general or normative (e.g., "protect stakeholders from excessively optimistic financial statements") without strong theoretical support. Formulate more focused research questions and avoid repetition. The purpose of the research should be clearly articulated as a bridge to the hypothesis in the next section.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 2
Close the introduction with a brief statement of the theoretical and practical contributions, as well as an overview of the paper's structure to guide the reader.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 3
The results section (Tables 2 and 3, as well as regression equations) is presented with basic statistics (descriptive, correlated, and regressive), but the narrative explaining the main findings is too brief. For example, the statement that accounting conservatism has a "mixed impact" is not elaborated in enough detail to explain why or how this impact occurs. Provide a more detailed narrative explanation for each key outcome, focusing on statistical and economic significance. Explain what "mixed impact" means specifically, such as whether conservatism increases growth in some banks but hinders in others, and why.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 7
There is no explanation for how these findings are relevant to the characteristics of Saudi banks (e.g., Islamic vs. conventional banks, large vs. small banks). Connect the findings to the unique characteristics of Saudi banks, such as bank size, ownership (government vs. private), or bank type (sharia vs. conventional). This will increase the relevance of the findings to international readers.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 9
The table is well presented, but there is no narrative highlighting the most significant findings or additional visualizations (e.g., graphs) to clarify the relationships between variables. Include a simple graph or visualization to illustrate the relationship between variables, such as an interaction graph showing how litigation risk moderates the effects of conservatism on financial growth.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 7-8
Although it is mentioned that robustnes tests were performed, the details are not explained, making it difficult to assess the strength of the findings. Provide details about the robustnes tests performed (e.g., tests with alternative models, sub-samples, or different time periods) to convince the reader of the strength of the findings	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 7-8
Link the findings to the transformation of the Saudi economy, such as the diversification of bank revenues or the expansion of the non-oil sector, to increase the relevance of the research.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 9
Discussions of managerial and regulatory implications (e.g., "balanced strategy" or "increased transparency") are generic and less specific to the Saudi context. There is no deep connection to local policies such as the SAMA regulation or the transformation of the Vision 2030. Explain why accounting conservatism has a mixed impact, taking into account factors such as bank heterogeneity, local regulation, or market dynamics. Connect these findings to theories (e.g., agency theory or signaling theory).	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 10
The findings were compared with the literature on a limited basis, with no in-depth discussion of whether these results were consistent, contradictory, or added new insights compared to previous studies. Compare the findings explicitly with previous studies, both supportive and contradictory, to show how this study adds new insights.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 9
Suggestions such as "fortify governance" or "tailored guidelines" do not provide specific guidance on how banks can implement them in practice. Avoid general advice such as "balanced strategy" and provide specific recommendations that can be applied by bank managers, regulators, or investors in the Saudi context.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 11
Although litigation risk is a moderator variable, the discussion of how this risk affects the relationship between conservatism and financial growth is less in-depth, especially in the context of Saudi law. Discuss in depth how litigation risk moderates the relationship between conservatism and growth, taking into account the relatively conservative Saudi legal environment compared to the Western market.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	10 Please refer to page no.
It does not have an explicitly stand-alone Conclusion section, but some elements of the conclusion can be found in the Discussion (page 9) and Limitation of Study and Future Suggestions (page 9) sections. However, these elements are not well organized as a cohesive conclusion.		Please refer to page no. 10
There is no comprehensive summary that integrates key findings (e.g., the mixed impact of accounting conservatism and the moderation effect of litigation risk) to provide a strong final picture. Start with a brief summary of the research results, highlighting the mixed impact of accounting conservatism on financial growth and the role of litigation risk moderation. Avoid repeating technical details from the Results section, and focus on the core message.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 1
Managerial and regulatory advice (e.g., "balanced approach" or "enhance financial reporting guidelines") are less specific and do not sufficiently highlight the relevance of the Saudi context, such as the SAMA regulation or Vision 2030. Explain how this research contributes to the accounting literature and banking practice, with an emphasis on the uniqueness of the Saudi context. Connect practical implications to local needs, such as SAMA regulations or the Vision 2030 agenda.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 11
The limitations section mentions factors such as risk tolerance and company culture, but does not explain how these limitations affect the interpretation of results or the reliability of findings. Briefly mention the limitations, but explain how these limitations affect the interpretation of the findings. Avoid generic list of limitations; focus on aspects relevant to the research design or context.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 11
Recommendations for future research (e.g., survey-based methods or causal analysis) are general and are not sufficiently related to the specific findings of this study. Propose future research that directly builds on current findings, focusing on specific aspects such as Islamic banks, regulatory dynamics, or alternative methods. Avoid overly broad suggestions.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 12
There are no concluding statements that affirm the research contribution or leave a lasting impression on readers, which is important for a reputable journal. Conclude with a statement affirming the importance of this research and its impact on the understanding of accounting and banking, both in Saudi Arabia and globally.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 10-11


Reviewer 2
The topic is interesting and well written. However, I think authors should concentrate the following suggestions to improve the manuscript for making the manuscript more accessible to the readers.	Thank you so much for your valuable comments, we would like to inform you that your comments have been addressed as provided in the text of paper.
- You need to justify the research gap more clearly to make it unique and interesting for readers.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 3
- Your research problem is not clearly justified, which may reduce the perceived importance of your study to readers. Therefore, I suggest incorporating research problem based on previous studies to highlight the significance of your work.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 2
- You presented the implications of your study first and the research questions at the end, which may confuse readers regarding your findings and their relevance. Therefore, I recommend rearranging the structure by placing the research questions earlier—separately—and presenting the potential implications of the findings at the end.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 4
Literature review - In this section, I observed that you described the problem statement. However, you should compare and justify your study in relation to previous research to demonstrate how your work differs and contributes to the existing literature. Therefore, I recommend adding this justification in the introduction, and including a review of previous studies in Section Two (Literature review), highlighting how your study is unique and addresses an unexplored area. - In Section 2.1, you justified the relationship between growth opportunities and financial growth. However, the citations you used are outdated. Therefore, you should incorporate findings with citations from more recent studies to enhance the relevance and appeal of your discussion for readers. - Please cite some recent studies in Section 2.2 (from 2024 or 2025) to make your review more up to date	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 4
Conclusion - In the conclusion section, you discussed your findings to highlight their significance. However, you need to justify your results by comparing them with findings from previous studies and demonstrate how your contributions are novel in comparison.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 10
Implication: - In this section, please separately practical and theoretical implications of your findings to make your study more comprehensive to the readers.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 11




Reviewer 3
Thanks for assigning the manuscript “Exploring the implications of the managerial choice of accounting conservatism strategy on the financial growth of Saudi banks” for review. I have examined the manuscript and have the following observations:	Thank you so much for your valuable comments, we would like to inform you that your comments have been addressed as provided in the text of paper.
The introduction clearly outlines the basic requirements to begin the study. However, to improve clarity, the authors could consider a short paragraph succinctly summarising the research aims. This could help readers quickly grasp the purpose of the study. Additionally, the authors should clearly outline key research questions and objectives of the study.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 2-4
The literature review is nicely crafted and presented. The authors should clearly state what is missing in the current literature and how this study contributes to existing literature.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 4
3.2. Study population: The study population represented in all the banks in KAS. (It will be KSA, I believe, the authors need to correct it.) Line 29, the study data was collected through report of several banks in kas ((It will be KSA, I believe, the authors need to correct it). Line 230: “To answer for Study questions and test its hypotheses.” The authors should further explain this line, as the placement and meaning of this line are still not clear. · Tools and information sources: This section needs some more explanation about the process used by the authors to collect and process the data for analysis. · The statistical processing used: It is advisable to change the heading to “Tools of Data Analysis”	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 6-7
Research Methodology: This section is nicely drafted. A few questions need to be further explained: The authors mentioned that a desk survey was conducted. How was this survey conducted, and what was the process behind conducting such a survey? The authors have mentioned that the data was collected through reports of several banks. If possible, it is advisable to provide a brief description of the type of banks surveyed by the authors.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.
Line 264: Pearson Correlation matrix of coefficients of regress model (Kindly write the full name, regression model)	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	8 Please refer to page no.
Line 268: From the analysis of above Table,. we found the (remove full stop) , Line 269: in model is 0.809 That Means strong relation (That should start from small t). There are many such errors. Authors are required to proofread it thoroughly and correct it.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 8
Line 276: problem in models abut model (it will be “about”).	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 9
Line 278: T-test there are all dep and control variables (What is dep here?) I believe it will be dependent variable. The authors should not use such abbreviations.	Thank you so much for your valuable comment. Your comments have been addressed.	Please refer to page no. 7
Line 280: ,Means (remove comma and M should be small).	Thank you so much for your valuable comment. Your comments have been addressed.	Please refer to page no. 7
Line 281: Conservation (AC) , TA,TC) and and Growth Opportunities (GO)). (delete repeated and, also the extra bracket.	Thank you so much for your valuable comment. Your comments have been addressed.	Please refer to page no. 7
Since regression analysis has been used in the study so it is advisable to present ANOVA results of the variables. The authors should also present the regression results of the variables in a more detailed manner.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 7-9
Regression tables, ANOVA tables should be provided in their standard format, which is generally used in scientific research publications.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 7-9
The authors have presented the Estimation Equation at the end. The authors should provide the model specification in a more detailed manner. It is also required to present the model specification.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 7-9
The authors are advised to include a discussion section that includes the results of each element and compares them with the previously published articles. This addition would help readers more conveniently understand the outcomes of the present study.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 9
The authors should locate the study's implications before the conclusion based on practical, theoretical, policy, and societal implications.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 10
The conclusion section should focus on limitations and future directions.	Thank you so much for your valuable comments. Your comments have been addressed as provided in the text of paper.	Please refer to page no. 11
There are multiple writing and grammar errors in many statements. The authors should proofread the entire manuscript for such errors.	Thank you so much for your valuable comment. Your comments have been addressed.	Please refer to wholly paper.

Round 2

Reviewer 1 Report

Comments and Suggestions for Authors

Summarize the introduction to 1–2 pages (about 400–600 words) with a clear structure: (a) the background of the issue, (b) the gaps in the research, (c) the objectives and contributions of the research, and (d) the relevance of the Saudi context. Avoid repeating the well-known definition of accounting conservatism or the importance of financial growth. Focus on the unique aspects of this research.
Paragraph 1: Briefly explain the importance of accounting conservatism in financial reporting, with one or two key quotes (e.g., Hejranijamil et al., 2020, for the context of emerging markets). Emphasize relevance for the banking sector. Paragraph 2: Highlight research gaps, for example, the lack of studies on the role of litigation risk as a moderation variable in the relationship between accounting conservatism and financial growth in emerging markets, particularly the Saudis. Paragraph 3: Explain the unique Saudi context (Vision 2030, SAMA regulation, adoption of IFRS, differences between Islamic and conventional banks) and why this is important for global research. Paragraph 4: State the research objectives, hypotheses, and academic and practical contributions (e.g., implications for regulators, investors, and bank managers).
More explicitly describe the research gaps that this study fills. For example, mention that most of the research on accounting conservatism was conducted in Western markets (e.g., Black et al., 2022) and lacked exploration of emerging markets with less litigation legal environments such as the Saudis. Emphasize that this study integrates litigation risk as a moderation variable, which is rarely studied in similar contexts.
Increase international relevance by connecting the Saudi context to global issues, such as the adoption of IFRS or financial reporting challenges in emerging markets. Briefly compare the characteristics of the Saudi market (e.g., dominance of government ownership, low risk of litigation) with other markets (e.g., GCC, ASEAN, or the West) to attract international readers.
Strengthen explanations of how Vision 2030, SAMA regulations, and the differences between Islamic and conventional banks affect accounting conservatism. Briefly explain how sharia principles (e.g., emphasis on transparency and fairness) can reinforce conservative tendencies in Islamic banks compared to conventional banks.
Simplify the language to improve readability, avoid unnecessary jargon, and make sure sentences flow logically. Correct grammatical errors and consistency of terms (e.g., "lawsuit risk" vs. "litigation risk" are used interchangeably; choose one term and use it consistently). Avoid repetition of basic concepts such as the definition of accounting conservatism, which is more appropriate in the literature review section.
Add an explicit statement of theoretical and practical contributions at the end of the introduction. Explain how this study expands the literature on accounting conservatism, provides new insights into litigation risk as a moderation variable, and offers practical implications for regulators and bank managers.
Make sure all important metrics are reported in full in Table 5, including the R-squared, Adjusted R-squared, and F-statistic values explicitly. Add a brief description below the table to explain what each column represents (for example, what "Cons" means in the context of a regression model).
Conduct a sub-group analysis to compare Islamic and conventional banks, as well as large and small banks, to explore variations in the relationship between accounting conservatism and financial growth. Report these results in additional tables or graphs.
Provide a clearer and more detailed interpretation for each regression result. For example, explain why the coefficient of accounting conservatism (AC) is significant (t=7.950, p=0.000), and why litigation risk (LR) is not significant (t=0.367, p=0.714). Relate these results to the hypotheses (H1 and H2) explicitly.
Discuss in more depth why litigation risk is not significant in the Saudi context, with reference to cultural factors (e.g., mediation preference over litigation) and regulation (e.g., SAMA's strict oversight). Compare these findings with studies in more litigation markets, such as the U.S. (e.g., Black et al., 2022), to highlight the differences in context.
Relate the findings to relevant theoretical frameworks, such as agency theory (to explain how conservatism reduces conflicts of interest) or signaling theory (to explain how conservatism increases investor confidence). Explain how the findings support or challenge this theory in the Saudi context.
Compare the findings with studies in other emerging markets (e.g., GCC countries such as the UAE or Qatar) or Western markets to highlight the uniqueness of the Saudi context. Discuss how factors such as low litigation risk or SAMA regulation differentiate these outcomes from other markets.
Provide more specific and actionable recommendations for practitioners (e.g., bank managers) and policymakers (e.g., SAMA). For example, suggest how banks can balance accounting conservatism with growth strategies, or how SAMA can adapt IFRS guidelines to support growth without sacrificing transparency.
Reduce the repetition of the findings already described in the results section. Focus the discussion on interpretation, context, and implications, not just summarizing the regression results. For example, avoid repeating statistics such as "t=7,950, p=0,000" over and over again, and instead explain the meaning of the findings in a broader context.
Summarize the conclusions into 1–2 paragraphs (approximately 200–300 words) summarizing key findings, theoretical and practical contributions, and implications for future research without repeating the statistical details of the Results section (e.g., t-value or p-value). Focus on the synthesis of the findings and the big implications.
Explain explicitly how this research contributes to the accounting and financial literature, particularly in the context of emerging markets. Emphasize the uniqueness of studying litigation risk as a moderation variable in a legal environment that lacks litigation. Include practical implications that are specific to bank managers, regulators (SAMAs), and investors.
Connect the findings to the global context, for example, how the results in Saudi could provide lessons for other emerging markets with strict regulation or low litigation risk (e.g., GCC or ASEAN countries). Briefly compare with Western markets to highlight the differences.
Include more actionable recommendations for bank managers and regulators. For example, suggest how banks can use accounting conservatism as a strategic tool to increase investor confidence, or how SAMA can develop financial reporting guidelines that support growth without sacrificing transparency.
Eliminate repetition about research limitations (which are already discussed in a separate section) and focus on innovative and specific future research suggestions. For example, suggest a qualitative study to explore the perspective of a bank manager or a cross-country analysis to compare the effects of conservatism in other emerging markets.
Use more concise and professional language, avoid repetition of phrases such as "the results indicate" or "the study shows," and ensure consistency of terms (e.g., "litigation risk" vs. "lawsuit risk"). Improve the narrative flow to make it more logical and engaging.

Author Response

#	Reviewer 1:
1.	Summarize the introduction to 1–2 pages (about 400–600 words) with a clear structure: (a) the background of the issue, (b) the gaps in the research, (c) the objectives and contributions of the research, and (d) the relevance of the Saudi context. Avoid repeating the well-known definition of accounting conservatism or the importance of financial growth. Focus on the unique aspects of this research	Thank you very much for the comment that leads to improving our manuscript. The introduction has been summarized according to your comment.	Please refer to page no. 2 & 3
2.	Paragraph 1: Briefly explain the importance of accounting conservatism in financial reporting, with one or two key quotes (e.g., Hejranijamil et al., 2020, for the context of emerging markets). Emphasize relevance for the banking sector. Paragraph 2: Highlight research gaps, for example, the lack of studies on the role of litigation risk as a moderation variable in the relationship between accounting conservatism and financial growth in emerging markets, particularly the Saudis. Paragraph 3: Explain the unique Saudi context (Vision 2030, SAMA regulation, adoption of IFRS, differences between Islamic and conventional banks) and why this is important for global research. Paragraph 4: State the research objectives, hypotheses, and academic and practical contributions (e.g., implications for regulators, investors, and bank managers)	The introduction has been rearranged according to your comment.	Please refer to page no. 2 & 3
3.	More explicitly describe the research gaps that this study fills. For example, mention that most of the research on accounting conservatism was conducted in Western markets (e.g., Black et al., 2022) and lacked exploration of emerging markets with less litigation legal environments such as the Saudis. Emphasize that this study integrates litigation risk as a moderation variable, which is rarely studied in similar contexts	The research gap is highlighted as per your comment and shown in yellow.	Please refer to page no. 2
4.	Increase international relevance by connecting the Saudi context to global issues, such as the adoption of IFRS or financial reporting challenges in emerging markets. Briefly compare the characteristics of the Saudi market (e.g., dominance of government ownership, low risk of litigation) with other markets (e.g., GCC, ASEAN, or the West) to attract international readers	International relevance and comparability are enhanced by commentary and highlighted in yellow.	Please refer to page no. 3
5.	Strengthen explanations of how Vision 2030, SAMA regulations, and the differences between Islamic and conventional banks affect accounting conservatism. Briefly explain how sharia principles (e.g., emphasis on transparency and fairness) can reinforce conservative tendencies in Islamic banks compared to conventional banks	Your comment has been processed, and highlighted in yellow.	Please refer to page no. 2
6.	Simplify the language to improve readability, avoid unnecessary jargon, and make sure sentences flow logically. Correct grammatical errors and consistency of terms (e.g., "lawsuit risk" vs. "litigation risk" are used interchangeably; choose one term and use it consistently). Avoid repetition of basic concepts such as the definition of accounting conservatism, which is more appropriate in the literature review section	Your comment has been processed. The entire article has been reviewed.
7.	Add an explicit statement of theoretical and practical contributions at the end of the introduction. Explain how this study expands the literature on accounting conservatism, provides new insights into litigation risk as a moderation variable, and offers practical implications for regulators and bank managers	Your comment has been processed, and highlighted in yellow.	Please refer to page no. 3
8.	Make sure all important metrics are reported in full in Table 5, including the R-squared, Adjusted R-squared, and F-statistic values explicitly. Add a brief description below the table to explain what each column represents (for example, what "Cons" means in the context of a regression model)	Your comment has been processed, and highlighted in yellow.	Please refer to page no. 8
9.	Conduct a sub-group analysis to compare Islamic and conventional banks, as well as large and small banks, to explore variations in the relationship between accounting conservatism and financial growth. Report these results in additional tables or graphs	Your comment has been processed, and highlighted in yellow.	Please refer to page no. 8-9
10.	Provide a clearer and more detailed interpretation for each regression result. For example, explain why the coefficient of accounting conservatism (AC) is significant (t=7.950, p=0.000), and why litigation risk (LR) is not significant (t=0.367, p=0.714). Relate these results to the hypotheses (H1 and H2) explicitly	Your comment has been processed, and highlighted in yellow.	Please refer to page no. 8
11.	Discuss in more depth why litigation risk is not significant in the Saudi context, with reference to cultural factors (e.g., mediation preference over litigation) and regulation (e.g., SAMA's strict oversight). Compare these findings with studies in more litigation markets, such as the U.S. (e.g., Black et al., 2022), to highlight the differences in context	Your comment has been processed, and highlighted in yellow.	Please refer to page no. 10
12.	Relate the findings to relevant theoretical frameworks, such as agency theory (to explain how conservatism reduces conflicts of interest) or signaling theory (to explain how conservatism increases investor confidence). Explain how the findings support or challenge this theory in the Saudi context	Your comment has been processed, and highlighted in yellow.	Please refer to page no. 10-11
13.	Compare the findings with studies in other emerging markets (e.g., GCC countries such as the UAE or Qatar) or Western markets to highlight the uniqueness of the Saudi context. Discuss how factors such as low litigation risk or SAMA regulation differentiate these outcomes from other markets	Your comment has been processed, and highlighted in yellow.	Please refer to page no. 11
14.	Provide more specific and actionable recommendations for practitioners (e.g., bank managers) and policymakers (e.g., SAMA). For example, suggest how banks can balance accounting conservatism with growth strategies, or how SAMA can adapt IFRS guidelines to support growth without sacrificing transparency	Your comment has been processed, and highlighted in yellow.	Please refer to page no. 12
15.	Reduce the repetition of the findings already described in the results section. Focus the discussion on interpretation, context, and implications, not just summarizing the regression results. For example, avoid repeating statistics such as "t=7,950, p=0,000" over and over again, and instead explain the meaning of the findings in a broader context	Your comment has been processed, and highlighted in yellow.	Please refer to page no. 11-12
16.	Summarize the conclusions into 1–2 paragraphs (approximately 200–300 words) summarizing key findings, theoretical and practical contributions, and implications for future research without repeating the statistical details of the Results section (e.g., t-value or p-value). Focus on the synthesis of the findings and the big implications	Your comment has been processed.	Please refer to page no. 9
17.	Explain explicitly how this research contributes to the accounting and financial literature, particularly in the context of emerging markets. Emphasize the uniqueness of studying litigation risk as a moderation variable in a legal environment that lacks litigation. Include practical implications that are specific to bank managers, regulators (SAMAs), and investors	Your comment has been processed, and highlighted in yellow.	Please refer to page no. 3
18.	Connect the findings to the global context, for example, how the results in Saudi could provide lessons for other emerging markets with strict regulation or low litigation risk (e.g., GCC or ASEAN countries). Briefly compare with Western markets to highlight the differences	Your comment has been processed, and highlighted in yellow.	Please refer to page no. 9
19.	Include more actionable recommendations for bank managers and regulators. For example, suggest how banks can use accounting conservatism as a strategic tool to increase investor confidence, or how SAMA can develop financial reporting guidelines that support growth without sacrificing transparency	Your comment has been processed, and highlighted in yellow.	Please refer to page no. 12
20.	Eliminate repetition about research limitations (which are already discussed in a separate section) and focus on innovative and specific future research suggestions. For example, suggest a qualitative study to explore the perspective of a bank manager or a cross-country analysis to compare the effects of conservatism in other emerging markets	Your comment has been processed.	Please refer to page no. 11-12
21.	Use more concise and professional language, avoid repetition of phrases such as "the results indicate" or "the study shows," and ensure consistency of terms (e.g., "litigation risk" vs. "lawsuit risk"). Improve the narrative flow to make it more logical and engaging	Your comment has been processed. The entire article has been reviewed.
	Reviewer 2
1)	3.2. Study population: (The author has removed this in the revised version; however, some observations were given in the first review.)	Thank you very much for the comment that leads to improving our manuscript. The paper has been reviewed and revised based on your feedback.
2)	3.3. Tools and information sources: (The author has removed this in the revised version; however, some observations were given in the first review.)
3)	Line 264: Pearson Correlation matrix of coefficients of regress model (Kindly write the full name, regression model) (Not addressed in the revised version, still same)	Your comment has been processed, and highlighted in yellow.	Please refer to page no. 7
4)	Line 269: in model is 0.809 That Means strong relation (That should start from small t). There are many such errors. Authors are required to proofread it thoroughly and correct it. (Not addressed in the revised version, still the same)	Thank you for highlighting this issue. We acknowledge the oversight in the phrasing and statistical interpretation. The sentence “In model is 0.809 that means strong relation” has been revised for clarity and grammatical accuracy. It now reads: > “The model exhibits a strong relationship between the variables, as indicated by the correlation coefficient (R = 0.809).” Additionally, we have carefully proofread the entire manuscript to correct similar grammatical and interpretive inconsistencies, ensuring technical precision and academic tone throughout. We appreciate your attention to detail and have implemented the suggested corrections accordingly.
5)	Line 276: problem in models abut model (it will be “about”). (Not addressed in the revised version, still the same)	Your comment has been processed.	Please refer to page no. 8
6)	Line 324 in revised version = result of R in model is 0.809 That Means strong relation (the That Means should be that means) There are many such mistakes. Often, the words start with a capital letter in between the sentences. The authors are required to proofread the entire paper	This error has been addressed and the entire manuscript has been reviewed.
7)	Since regression analysis has been used in the study so it is advisable to present ANOVA results of the variables. The authors should also present the regression results of the variables in a more detailed manner. (Not addressed in the revised version, still the same)	A table has been added and the comments have been modified according to your comment.
8)	The authors have presented the Estimation Equation at the end. The authors should provide the model specification in a more detailed manner. It is also required to present the model specification. (Not addressed in the revised version, still the same)	Your comment has been processed, and highlighted in yellow.	Please refer to page no. 8-9
9)	The conclusion section should focus on limitations and future directions. The authors have put limitation and future direction as a new heading, no. 7, which is not needed. Authors should merge this section with a conclusion, and the heading should be: Conclusion, limitations and future directions	We see that separation is more clear than integration.
10)	There are still multiple writing and grammar errors in many statements. The authors should proofread the entire manuscript for such errors Comments on the Quality of English Language	The entire manuscript has been reviewed for spelling and grammatical errors.

Author Response File: Author Response.docx

Reviewer 3 Report

Comments and Suggestions for Authors

Dear Editor,

Thanks for sending the revised version for review. I have checked it and found following observations:

3.2. Study population: (The author has removed this in the revised version; however, some observations were given in the first review.)

3.3. Tools and information sources: (The author has removed this in the revised version; however, some observations were given in the first review.)

Line 264: Pearson Correlation matrix of coefficients of regress model (Kindly write the full name, regression model) (Not addressed in the revised version, still same)

Line 269: in model is 0.809 That Means strong relation (That should start from small t). There are many such errors. Authors are required to proofread it thoroughly and correct it. (Not addressed in the revised version, still the same)

Line 276: problem in models abut model (it will be “about”). (Not addressed in the revised version, still the same)

Line 324 in revised version = result of R in model is 0.809 That Means strong relation (the That Means should be that means) There are many such mistakes. Often, the words start with a capital letter in between the sentences. The authors are required to proofread the entire paper.

Since regression analysis has been used in the study so it is advisable to present ANOVA results of the variables. The authors should also present the regression results of
the variables in a more detailed manner. (Not addressed in the revised version, still the same)

The authors have presented the Estimation Equation at the end. The authors should provide the
model specification in a more detailed manner. It is also required to present the model specification. (Not addressed in the revised version, still the same)

The conclusion section should focus on limitations and future directions. The authors have put limitation and future direction as a new heading, no. 7, which is not needed. Authors should merge this section with a conclusion, and the heading should be: Conclusion, limitations and future directions.

There are still multiple writing and grammar errors in many statements. The authors should proofread the entire manuscript for such errors.

Comments on the Quality of English Language

There are still multiple writing and grammar errors in many statements. The authors should proofread the entire manuscript for such errors.

Author Response

#	Reviewer 1:
1.	Summarize the introduction to 1–2 pages (about 400–600 words) with a clear structure: (a) the background of the issue, (b) the gaps in the research, (c) the objectives and contributions of the research, and (d) the relevance of the Saudi context. Avoid repeating the well-known definition of accounting conservatism or the importance of financial growth. Focus on the unique aspects of this research	Thank you very much for the comment that leads to improving our manuscript. The introduction has been summarized according to your comment.	Please refer to page no. 2 & 3
2.	Paragraph 1: Briefly explain the importance of accounting conservatism in financial reporting, with one or two key quotes (e.g., Hejranijamil et al., 2020, for the context of emerging markets). Emphasize relevance for the banking sector. Paragraph 2: Highlight research gaps, for example, the lack of studies on the role of litigation risk as a moderation variable in the relationship between accounting conservatism and financial growth in emerging markets, particularly the Saudis. Paragraph 3: Explain the unique Saudi context (Vision 2030, SAMA regulation, adoption of IFRS, differences between Islamic and conventional banks) and why this is important for global research. Paragraph 4: State the research objectives, hypotheses, and academic and practical contributions (e.g., implications for regulators, investors, and bank managers)	The introduction has been rearranged according to your comment.	Please refer to page no. 2 & 3
3.	More explicitly describe the research gaps that this study fills. For example, mention that most of the research on accounting conservatism was conducted in Western markets (e.g., Black et al., 2022) and lacked exploration of emerging markets with less litigation legal environments such as the Saudis. Emphasize that this study integrates litigation risk as a moderation variable, which is rarely studied in similar contexts	The research gap is highlighted as per your comment and shown in yellow.	Please refer to page no. 2
4.	Increase international relevance by connecting the Saudi context to global issues, such as the adoption of IFRS or financial reporting challenges in emerging markets. Briefly compare the characteristics of the Saudi market (e.g., dominance of government ownership, low risk of litigation) with other markets (e.g., GCC, ASEAN, or the West) to attract international readers	International relevance and comparability are enhanced by commentary and highlighted in yellow.	Please refer to page no. 3
5.	Strengthen explanations of how Vision 2030, SAMA regulations, and the differences between Islamic and conventional banks affect accounting conservatism. Briefly explain how sharia principles (e.g., emphasis on transparency and fairness) can reinforce conservative tendencies in Islamic banks compared to conventional banks	Your comment has been processed, and highlighted in yellow.	Please refer to page no. 2
6.	Simplify the language to improve readability, avoid unnecessary jargon, and make sure sentences flow logically. Correct grammatical errors and consistency of terms (e.g., "lawsuit risk" vs. "litigation risk" are used interchangeably; choose one term and use it consistently). Avoid repetition of basic concepts such as the definition of accounting conservatism, which is more appropriate in the literature review section	Your comment has been processed. The entire article has been reviewed.
7.	Add an explicit statement of theoretical and practical contributions at the end of the introduction. Explain how this study expands the literature on accounting conservatism, provides new insights into litigation risk as a moderation variable, and offers practical implications for regulators and bank managers	Your comment has been processed, and highlighted in yellow.	Please refer to page no. 3
8.	Make sure all important metrics are reported in full in Table 5, including the R-squared, Adjusted R-squared, and F-statistic values explicitly. Add a brief description below the table to explain what each column represents (for example, what "Cons" means in the context of a regression model)	Your comment has been processed, and highlighted in yellow.	Please refer to page no. 8
9.	Conduct a sub-group analysis to compare Islamic and conventional banks, as well as large and small banks, to explore variations in the relationship between accounting conservatism and financial growth. Report these results in additional tables or graphs	Your comment has been processed, and highlighted in yellow.	Please refer to page no. 8-9
10.	Provide a clearer and more detailed interpretation for each regression result. For example, explain why the coefficient of accounting conservatism (AC) is significant (t=7.950, p=0.000), and why litigation risk (LR) is not significant (t=0.367, p=0.714). Relate these results to the hypotheses (H1 and H2) explicitly	Your comment has been processed, and highlighted in yellow.	Please refer to page no. 8
11.	Discuss in more depth why litigation risk is not significant in the Saudi context, with reference to cultural factors (e.g., mediation preference over litigation) and regulation (e.g., SAMA's strict oversight). Compare these findings with studies in more litigation markets, such as the U.S. (e.g., Black et al., 2022), to highlight the differences in context	Your comment has been processed, and highlighted in yellow.	Please refer to page no. 10
12.	Relate the findings to relevant theoretical frameworks, such as agency theory (to explain how conservatism reduces conflicts of interest) or signaling theory (to explain how conservatism increases investor confidence). Explain how the findings support or challenge this theory in the Saudi context	Your comment has been processed, and highlighted in yellow.	Please refer to page no. 10-11
13.	Compare the findings with studies in other emerging markets (e.g., GCC countries such as the UAE or Qatar) or Western markets to highlight the uniqueness of the Saudi context. Discuss how factors such as low litigation risk or SAMA regulation differentiate these outcomes from other markets	Your comment has been processed, and highlighted in yellow.	Please refer to page no. 11
14.	Provide more specific and actionable recommendations for practitioners (e.g., bank managers) and policymakers (e.g., SAMA). For example, suggest how banks can balance accounting conservatism with growth strategies, or how SAMA can adapt IFRS guidelines to support growth without sacrificing transparency	Your comment has been processed, and highlighted in yellow.	Please refer to page no. 12
15.	Reduce the repetition of the findings already described in the results section. Focus the discussion on interpretation, context, and implications, not just summarizing the regression results. For example, avoid repeating statistics such as "t=7,950, p=0,000" over and over again, and instead explain the meaning of the findings in a broader context	Your comment has been processed, and highlighted in yellow.	Please refer to page no. 11-12
16.	Summarize the conclusions into 1–2 paragraphs (approximately 200–300 words) summarizing key findings, theoretical and practical contributions, and implications for future research without repeating the statistical details of the Results section (e.g., t-value or p-value). Focus on the synthesis of the findings and the big implications	Your comment has been processed.	Please refer to page no. 9
17.	Explain explicitly how this research contributes to the accounting and financial literature, particularly in the context of emerging markets. Emphasize the uniqueness of studying litigation risk as a moderation variable in a legal environment that lacks litigation. Include practical implications that are specific to bank managers, regulators (SAMAs), and investors	Your comment has been processed, and highlighted in yellow.	Please refer to page no. 3
18.	Connect the findings to the global context, for example, how the results in Saudi could provide lessons for other emerging markets with strict regulation or low litigation risk (e.g., GCC or ASEAN countries). Briefly compare with Western markets to highlight the differences	Your comment has been processed, and highlighted in yellow.	Please refer to page no. 9
19.	Include more actionable recommendations for bank managers and regulators. For example, suggest how banks can use accounting conservatism as a strategic tool to increase investor confidence, or how SAMA can develop financial reporting guidelines that support growth without sacrificing transparency	Your comment has been processed, and highlighted in yellow.	Please refer to page no. 12
20.	Eliminate repetition about research limitations (which are already discussed in a separate section) and focus on innovative and specific future research suggestions. For example, suggest a qualitative study to explore the perspective of a bank manager or a cross-country analysis to compare the effects of conservatism in other emerging markets	Your comment has been processed.	Please refer to page no. 11-12
21.	Use more concise and professional language, avoid repetition of phrases such as "the results indicate" or "the study shows," and ensure consistency of terms (e.g., "litigation risk" vs. "lawsuit risk"). Improve the narrative flow to make it more logical and engaging	Your comment has been processed. The entire article has been reviewed.
	Reviewer 2
1)	3.2. Study population: (The author has removed this in the revised version; however, some observations were given in the first review.)	Thank you very much for the comment that leads to improving our manuscript. The paper has been reviewed and revised based on your feedback.
2)	3.3. Tools and information sources: (The author has removed this in the revised version; however, some observations were given in the first review.)
3)	Line 264: Pearson Correlation matrix of coefficients of regress model (Kindly write the full name, regression model) (Not addressed in the revised version, still same)	Your comment has been processed, and highlighted in yellow.	Please refer to page no. 7
4)	Line 269: in model is 0.809 That Means strong relation (That should start from small t). There are many such errors. Authors are required to proofread it thoroughly and correct it. (Not addressed in the revised version, still the same)	Thank you for highlighting this issue. We acknowledge the oversight in the phrasing and statistical interpretation. The sentence “In model is 0.809 that means strong relation” has been revised for clarity and grammatical accuracy. It now reads: > “The model exhibits a strong relationship between the variables, as indicated by the correlation coefficient (R = 0.809).” Additionally, we have carefully proofread the entire manuscript to correct similar grammatical and interpretive inconsistencies, ensuring technical precision and academic tone throughout. We appreciate your attention to detail and have implemented the suggested corrections accordingly.
5)	Line 276: problem in models abut model (it will be “about”). (Not addressed in the revised version, still the same)	Your comment has been processed.	Please refer to page no. 8
6)	Line 324 in revised version = result of R in model is 0.809 That Means strong relation (the That Means should be that means) There are many such mistakes. Often, the words start with a capital letter in between the sentences. The authors are required to proofread the entire paper	This error has been addressed and the entire manuscript has been reviewed.
7)	Since regression analysis has been used in the study so it is advisable to present ANOVA results of the variables. The authors should also present the regression results of the variables in a more detailed manner. (Not addressed in the revised version, still the same)	A table has been added and the comments have been modified according to your comment.
8)	The authors have presented the Estimation Equation at the end. The authors should provide the model specification in a more detailed manner. It is also required to present the model specification. (Not addressed in the revised version, still the same)	Your comment has been processed, and highlighted in yellow.	Please refer to page no. 8-9
9)	The conclusion section should focus on limitations and future directions. The authors have put limitation and future direction as a new heading, no. 7, which is not needed. Authors should merge this section with a conclusion, and the heading should be: Conclusion, limitations and future directions	We see that separation is more clear than integration.
10)	There are still multiple writing and grammar errors in many statements. The authors should proofread the entire manuscript for such errors Comments on the Quality of English Language	The entire manuscript has been reviewed for spelling and grammatical errors.

Author Response File: Author Response.docx

Article Menu

Exploring the Implications of the Managerial Choice of Accounting Conservatism Strategy on the Financial Growth of Saudi Banks

Further Information

Guidelines

MDPI Initiatives

Follow MDPI