Conservatism exists in response to economic demand for verifiable and timely information that mitigates agency problems in contracting, and in response to changes in the regulatory and litigation environments. Conservatism effects on financial reporting, it shapes firms’ internal financial decisions too. Therefor, cash management is one of the managements 'internal decisions that it can be affected by trait of conservative of encounters. So we examine the impact of conservatism in flexibility in cash management of 86 firms of listed on the Tehran Stock Exchange during 1384-1387 with cross sectional and panel analyze. The findings exhibit negative relationship between conservatism and flexibility in cash management inclusive cash and propensity to save cash from free cash flows.
This finding can explain importance of role of conservatism in extent of financial accounting and it can refer to impact of conservatism on managements’ internal decisions too and it recognizes management with importance and role of conservatism in financial flexibility.
Fakhari, H., & Arab, K. (2012). The study of relationship conservatism & flexibility in cash management. Accounting and Auditing Research, 4(16), 136-151. doi: 10.22034/iaar.2012.104587
MLA
Hossein Fakhari; Khadijeh Arab. "The study of relationship conservatism & flexibility in cash management". Accounting and Auditing Research, 4, 16, 2012, 136-151. doi: 10.22034/iaar.2012.104587
HARVARD
Fakhari, H., Arab, K. (2012). 'The study of relationship conservatism & flexibility in cash management', Accounting and Auditing Research, 4(16), pp. 136-151. doi: 10.22034/iaar.2012.104587
VANCOUVER
Fakhari, H., Arab, K. The study of relationship conservatism & flexibility in cash management. Accounting and Auditing Research, 2012; 4(16): 136-151. doi: 10.22034/iaar.2012.104587
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