This study aims to contribute to the ongoing debate over accounting conservatism through examining whether the corporate strategy can provide a logical justification for the conservatism, and whether this justification is consistent with or contradicts the contractual justification. In this context, the study examines the impact of corporate strategy on the level of conservatism in financial statements, and the impact of the level of conservatism on corporate investment level. Using data from a sample of non-financial Saudi listed companies, the results show that prospector companies are more likely to provide more conservative financial statements, and the level of conservatism influences investment level. The results also show that the integration between corporate strategy and the level of conservatism influence the level of investment. These results suggest that accounting conservatism can be explained in the context of both business strategy and contractual benefits. Also, the results imply that adopting business strategy could influence the financial reporting process.

The business context has been affected by the action of Covid 19, and companies must react to this new reality. The research analyzes people, processes and technology and their effect on the development of the respective business strategy in small companies in Huancayo, Peru. The study design was non-probabilistic, cross-sectional, qualitative-quantitative and explanatory in a sample of 99 business units. The analytical technique used was structural equation modeling based on PLS. The results indicate that there is a positive relationship between the processes and technology used and the implementation of actions to achieve their objectives. No significant relationship was found with people, given that in the face of the health emergency, economic paralysis, closure of markets and sectors, the companies had to make decisions and postpone concern for human resources. The coefficient of determination (R2) was 79.3%, which shows that the model presented allows predicting future results.