Investigation of the accounting conservatism effect on decision usefulness

Subject Areas : Management Accounting

Hashem Nikoomaram ¹ , Hamidreaza Vakilifard ² , Roohallah Dehghan Banadaki ³

1 - نویسنده اصلی و مسئول مکاتبات
2 - ندارد
3 - ندارد

Received: 2009-03-08 Accepted : 2009-05-19 Published : 2009-03-21

Keywords: Conservatism, Decision usefulness, Share Market Value, Share book value, The&#x0D, &#x0D, Efficient Markets Hypoth, conceptual framework, Net profit, Operating profit, Sales, Size of the Corporation,

Abstract :

This study analyzes the impact of accounting conservatism on decision usefulness.The hypothesis of the study were tested by making use of the mixed data of thecorporations accepted into the Securities Market from years 1381 to 1386. Thefindings of the study show that accounting conservatism has no decision usefulness inthe Iranian Securities Market. In other words, against the given theory in the sharedconceptual framework, there were not observed any relations between conservatismand decision usefulness in Iran. It is possible that this issue is affected by theinefficiency of the Iranian market, which is dependent on some information other thanthe accounting and financial information, and is less affected by the financial andaccounting information.