Available research consider relationship between financial reporting conservatism conditional and unconditional with firm value. In this research collect data of 76 accepted firm in stock exchange.for2005 to 2012 and test research hypotheses by a More
Available research consider relationship between financial reporting conservatism conditional and unconditional with firm value. In this research collect data of 76 accepted firm in stock exchange.for2005 to 2012 and test research hypotheses by analyses regression coefficient. First conserconservatism in accounting by Ball. and Shivakumar model( 2005) and MTB Standard measured and then influence conservatism accounting consider with firm value .We find a significant positive relationship between conditional and unconditional conservatism accounting withfirm value.it means with increasing conservatism level increase the firm value. To really exposition and suit stock transaction bias firm value thus Conditional and UnconditionalConservatism upon exposition and suit stock sensation therefore cause change to firm value
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Risk management is one of the most important tasks of managers. On the one hand, risk-taking leads to increased competitive advantage, and on the other hand, according to the modern portfolio theory, increased risk leads to potential negative fluctuations in return on i More
Risk management is one of the most important tasks of managers. On the one hand, risk-taking leads to increased competitive advantage, and on the other hand, according to the modern portfolio theory, increased risk leads to potential negative fluctuations in return on investment. Once the level of a firm's investments is commensurate with the appropriate level of risk, it can create value for the company. Conditional and unconditional conservatism can each reduce or increase risk because of their characteristics. Therefore, the purpose of the present study is to investigate the impact of firm investment on future stock return volatility considering the moderating effect of conditional and unconditional conservatism. In this regard, the financial information of 129 companies by Using the systematic removal method for the period 2009-2017 was used as combined data. Multivariate regression was used to analyze the data. The findings of the study suggest that conditional conservatism has a negative impact on the firm's future investment. Also, unconditional conservatism has a positive impact on the company's future investment. Other findings suggest that conditional conservatism has a negative impact on the relationship between firm investment and stock return volatility. Finally, unconditional conservatism has a positive effect on the relationship between firm investment and future stock return volatility.
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This study examines the relationship between debt maturity structure and accounting conservatism with emphasis on the role of agency costs. The sample used in our research includes 83 firms listed on the Tehran stock exchange during the period 2008-2015. The More
This study examines the relationship between debt maturity structure and accounting conservatism with emphasis on the role of agency costs. The sample used in our research includes 83 firms listed on the Tehran stock exchange during the period 2008-2015. The results of this study show that there is a positive and significant relationship between debt maturity structure with conditional conservatism and unconditional conservatism. Also, the results show that agency costs have a negative and significant impact on relationship between debt maturity structure and conditional conservatism but no impact on relationship between debt maturity structure and unconditional conservatism
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Abstract
Investment is known to be as one of the most important ways to expand the scope of companies’ operations and prevent them from being recessed and falling into downturn.
If the level of company’s investments is proportional to financial and o More
Abstract
Investment is known to be as one of the most important ways to expand the scope of companies’ operations and prevent them from being recessed and falling into downturn.
If the level of company’s investments is proportional to financial and operational policies, it would create value for the company and increase the stock value of the company.
One of the factors affecting these two parameters, that are the level of investment and the stock value, is the conservatism principle. Therefore, this research is aimed to study the effect of conditional and unconditional conservatism on the level of future investment and stock value.
In this regard, the financial data of 129 companies for a nine years period from March 20th 2008 till March 20th 2017 was used as combined data. To analyze the data, multivariate regression was used.
Research findings suggest that business entities who implement a high level of conditional conservatism, do a lower level of investment. While business entities who implement a high level of unconditional conservatism have a higher level of investment.
Another finding of the research suggests that the conditional and unconditional level of conservatism amplify the impact of the company's investment on stock value.
The results of this research can be explained in the view of conservative contract theory and the theory of information asymmetry.
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The main purpose of this paper is review of the relationship between conservatism and amount of earning anticipation of companies accepted in Tehran stock exchange. For quantifying the conditional conservatism, we use two measures including negative coefficient of total More
The main purpose of this paper is review of the relationship between conservatism and amount of earning anticipation of companies accepted in Tehran stock exchange. For quantifying the conditional conservatism, we use two measures including negative coefficient of total voluntary(non-operational) accrual items to total assets and the proportion of net income before unexpected items to market value of stockholders equity. Likewise, for quantifying the unconditional conservatism, we use two measures namely the rate of book value to market value of net assets and negative coefficient of total accrual items total assets average. Research hypothesis studied on each industries level and total industry level. The findings imply that there was no significant relationship between including negative coefficient of total voluntary(non-operational) accrual items and anticipated earning in total industry level.Also, there was a significant relationship between the proportion of net income before unexpected items to market value of stockholders equity and anticipated earning in plant and equipment, electric and ceramic tile industries; but there was not a significant relationship between them in total industry level. In addition, there was an insignificant relationship betweenthe proportionof book value to market value of net assets andanticipated earning in electric and food-beverage industries and this hypothesis corroborated in other industries and total industry level. Eventually, the results represent that the negative coefficient of total accrual items to total assets average had an insignificant relationship on anticipated earning.
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