This research investigates the effect of conservatism on the value relevance of accounting information. In this study for quantifying the conservatism from the Basu model and for quantifying information value relevance of accounting from both the return and price models were used. The financial data of 90 companies listed in Tehran Stock Exchange for the years since 1385 to 1389 collects and hypotheses investigates using multiple regression, Cramer z-test and Wald test. Research findings, while confirming the observation of conservatism in Iran, shows that moving from companies with low level of conservatism to Companies with high level of conservatism, increase the value relevance of accounting information. Also the results of the process of conservatism and value relevance of accounting information in the during this period, using the price model, indicates with increase the level of conservatism, value relevance of accounting information increases, but Such behavior wasn’t observed in the return model.
Mashayekh, S., & Hejrani Jamil, M. (2013). The relationship between conservatism and value relevance of accounting information in the Tehran Stock Exchange. Accounting and Auditing Research, 5(18), 18-31. doi: 10.22034/iaar.2013.104542
MLA
Shahnaz Mashayekh; Marzieh Hejrani Jamil. "The relationship between conservatism and value relevance of accounting information in the Tehran Stock Exchange". Accounting and Auditing Research, 5, 18, 2013, 18-31. doi: 10.22034/iaar.2013.104542
HARVARD
Mashayekh, S., Hejrani Jamil, M. (2013). 'The relationship between conservatism and value relevance of accounting information in the Tehran Stock Exchange', Accounting and Auditing Research, 5(18), pp. 18-31. doi: 10.22034/iaar.2013.104542
VANCOUVER
Mashayekh, S., Hejrani Jamil, M. The relationship between conservatism and value relevance of accounting information in the Tehran Stock Exchange. Accounting and Auditing Research, 2013; 5(18): 18-31. doi: 10.22034/iaar.2013.104542
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