The impact of the company's management system on the degree of conservatism in financial reporting by emphasis on the ability of managers

Subject Areas : Corporate governance

Saeed Anwar Khatibi ¹ ( Assistant Professor, Department of Accounting, Tabriz Branch, Islamic Azad University, Tabriz, Iran )
Muhaddech Hashemi ² ( Master student of accounting department, Tabriz branch, Islamic Azad University, Tabriz, Iran )

Received: 2023-03-01 Accepted : 2024-03-18 Published : 2023-02-20

Keywords: company's management system, conservatism in financial reporting, ability of managers,

Abstract :

The research investigates the impact of the company's management system on the degree of conservatism in financial reporting by emphasizing the ability of managers. This research is practical in terms of purpose, and causal (post-event) from correlation methodology point of view. The statistical population of the research consists of the companies listed in the Tehran Stock Exchange. 127 companies were selected as the research sample in the 7-year period of 2014-2020 using systematic removal sampling method. The data were collected by documentary method, and the relevant data for measuring variables were collected from the CODAL website and the financial statements of the companies, and the initial calculations were made in Excel, then STATA software was used to test the research hypotheses. The results showed that the company management system has an inverse effect on the degree of conservatism in financial reporting. Also, the ability of managers has an inverse effect on conservatism in financial reporting. The ability of managers has an inverse impact on the relationship between the company's management system and the level of conservatism in financial reporting.