The Effect of Conservatism on Accounting Information Quality of Corporations Listed in Tehran Stock Exchange

Subject Areas :

Fezeh Valizadeh Oghni ^{1 *} , Younes Badavar Nahandi ² , Rasool Baradaran Hasanzadeh ³

1 - کارشناس ارشد حسابداری، آموزشکده فنی و حرفه ای سما، دانشگاه آزاد اسلامی، واحد سراب، گروه حسابداری، سراب، ایران
2 - استادیار و عضو هیئت علمی دانشگاه آزاد اسلامی - واحد تبریز، گروه حسابداری
3 - استادیار و عضو هیئت علمی دانشگاه آزاد اسلامی - واحد تبریز، گروه حسابداری

Received: 2015-09-25 Accepted : 2015-09-25 Published : 2014-06-22

Keywords: Reliability, Conservatism, Accounting Information Quality, Relevancy,

Abstract :

This research focuses on the effect of conservatism on the accounting information quality. In this study the effect of conservatism on dimensions of relevancy and reliability of accounting information is surveyed. Earnings conservatism is measured using Givoly and Hayn model, ernings relevancy is measured using predictability of future income by current income regression, and earnings reliability is measured using earnings stability. The purpose of this research is applied, and the research method is causal or ex-post method. The research population is the corporations listed in Tehran Stock Exchange since 2004 to 2011 of which 70 companies has been selected using systematic deletion method as samples. Regression model, Kolmogrov–Smirnov and Durbin-watson tests are used for testing research hypotheses.For analyzing data, SPSS statistical software and Excel spreadsheet are used. The research results represent that the earnings conservatism has no effect on the relevancy and reliability of information.