Conditional conservatism appears in prompt recognition of loss toward earnings that is so called asymmetric timeliness of earnings. The asymmetric timeliness of earnings could arise from other phenomenon which is called costs stickiness. Costs stickiness means that costs are increasing during the sales increase, but when the sales decrease, the costs reduction will not be as much as prior increase. This research aims to identify the effect of costs stickiness on conditional conservatism. In order to attain the research purpose, 115 companies among the listed companies in Tehran Stock Exchange during the years 1382 to 1391 (2003-2012) were selected as statistical samples For data analysis and hypothesis testing, multivariable regression and compound data have been used. Findings of research signify that after controlling for the effect of costs stickiness, conditional conservatism will decrease, which means that a part of asymmetric timeliness of earnings model is due to costs stickiness. Also, if the cost stickiness effect during estimating the conditional conservatism is disregarded, the measured conservatism will be estimated more than its actual value.
Hashemi, S. A., & Nejati, A. (2015). The Effect of Costs Stickiness on Conditional Conservatism. Accounting and Auditing Research, 7(27), 20-33. doi: 10.22034/iaar.2015.103794
MLA
Seyed Abas Hashemi; Ali Nejati. "The Effect of Costs Stickiness on Conditional Conservatism". Accounting and Auditing Research, 7, 27, 2015, 20-33. doi: 10.22034/iaar.2015.103794
HARVARD
Hashemi, S. A., Nejati, A. (2015). 'The Effect of Costs Stickiness on Conditional Conservatism', Accounting and Auditing Research, 7(27), pp. 20-33. doi: 10.22034/iaar.2015.103794
VANCOUVER
Hashemi, S. A., Nejati, A. The Effect of Costs Stickiness on Conditional Conservatism. Accounting and Auditing Research, 2015; 7(27): 20-33. doi: 10.22034/iaar.2015.103794
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