1M.A., Department of Accounting, College of Sciences and Research, Islamic Azad University, Sistan -Balouchestan Branch, Zahedan, Iran
2Faculty Member of Management and Accounting, Islamic Azad University, Shahre -Rey Branch, Tehran, Iran
Online published on 7 December, 2013.
This study examines the impact of conditional and unconditional conservatism on earnings quality of listed companies in Tehran Stock Exchange during 1385 to 1390. This study uses temporal asymmetry Basoo models with adding of certain variables to measure conservatism. In this study, panel data analysis is used for stock exchange listed companies. This research was presented in the form of two hypotheses, and the statistical results have shown that DR*RET variable is significantly valid at the 0.05. This shows that the samples in this study are conservative in reporting their financial statements. Coefficient of earnings quality (CFO/NI) is not significant, which indicates that there is no significant relationship between earnings quality and conditional conservatism reflected in corporate profits. Earning quality variable coefficient equals to 0.0004 and adding MTB variable is not significant, this finding indicates that there is no significant relationship between earnings quality and unconditional conservatism on firms. Therefore, the first and the second hypothesis of this study cannot be approved.
Earning Quality, Conditional Conservatism, Unconditional Conservatism -Stock Exchange
