American Journal of Economics, Finance and Management
Articles Information
American Journal of Economics, Finance and Management, Vol.2, No.3, Jun. 2016, Pub. Date: Jun. 17, 2016
Assessing the Effect of Conditional and Unconditional Conservatism on Financial Reporting Quality in Listed Companies on Tehran Stock Exchange
Pages: 22-27 Views: 1253 Downloads: 1187
[01] Mahdi Filsaraei, Department of Accounting, Bojnourd Branch, Islamic Azad University, Bojnourd, Iran.
[02] Masoud Movaghar Davoodlee, Department of Accounting, Mashhad Branch, Islamic Azad University, Mashhad, Iran.
[03] Ali Naghizadeh, Department of Accounting, Neyshabour Branch, Islamic Azad University, Neyshabour, Iran.
[04] Hoda Majbouri Yazdi, Non-Governmental Scientific Institute of Hakiman’s Private Higher Education, Bojnourd, Iran.
Conservatism is an evaluation criterion of financial reporting quality. Requesting accounting information of higher quality can be influenced by the acceptance of securities in capital market. In this study, a major and two minor hypotheses are designed. All listed companies on Tehran Stock Exchange are considered as target population of the research which are examined over a ten-year period (2006-2015). Research sample is selected considering the following criteria: continuous activity of the firm during the research period, consistency of reporting timetables to omit seasonal effects, elimination of investment and financial intermediation institutions. The achieved findings indicate that at the significance level of %95 there is a significant relationship between conditional conservatism (derived from Givoly and Hayn’s (2000) model), unconditional conservatism (derived from Beaver and Ryan’s (2000) model) and reporting quality (following Barth et al. (2001) study).
Conditional Conservatism, Unconditional Conservatism, Financial Reporting Quality, Capital Market, Consistency of Reporting
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