Due to various motivations, managers trend to recognize profits and postpone losses. Being conservative is a limitation which bars the ability and tendency to implement such an opportunistic behavior. Board of directors, as a leading institution which plays leading and More
Due to various motivations, managers trend to recognize profits and postpone losses. Being conservative is a limitation which bars the ability and tendency to implement such an opportunistic behavior. Board of directors, as a leading institution which plays leading and supervising roles for executive managers' work, has a crucial role in leading the enterprise better and devising more conservative methods in timing profit recognition. The aim of the research is to define the relationship between the percentage of managerial ownership with the level of conservativeness implemented in the financial statements of companies accepted in Tehran Stock Exchange. The research statistical population include one hundred and eleven companies from companies accepted in Stock Exchange and the time span from 1385-1390. Simple linear regression has been used to test research hypothesis and the result of testing this hypothesis show a meaningful and positive relation between managerial ownership and accounting conservativeness and the lack of relationship between the percentage of free floating shares and accounting conservativeness
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