The Effect of Accounting Conservatism on the Short-Term Attitude of Executives: Empirical evidence of companies admitted to Tehran Stock Exchange

Subject Areas : Management Accounting

Afsaneh Tavangar ¹ , Mokhtar Keivanfar ²

1 - Department of Accounting, Assistant Professor, Central Tehran Branch, Islamic Azad University, Tehran, Iran.
2 - Phd of Accounting, Central Tehran Branch, Islamic Azad University, Tehran, Iran.

Received: 2018-03-17 Accepted : 2018-08-06 Published : 2019-03-21

Keywords: accounting conservatism, short-term managerial attitude, fantasy,

Abstract :

Accounting conservatism in conditions of uncertainty creates a prudent approach in identifying and measuring earnings and assets. Also, the managers' short-term view of a superficial and limited view in thinking, planning and decision making is a description of a kind of bias or tendency that creates a serious constraint in choices and decisions. On the other hand, subconcidence is a concept that occurs frequently in everyday life, and its footprint is also seen in investment decisions, meaning that individuals are optimistic about their verdict and may hardly consider mistakes in their judgment. In this study, we tried to investigate the effect of accounting conservatism on the short-term attitude of long-term managers using data from 120 companies accepted in Tehran Stock Exchange during 2012 to 2016, combined data model and multivariate regression model. The results showed that there is a reverse and significant relationship between accounting conservatism and short-term attitude of managers.

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