Impact of Conservatism on the Accounting Information Quality and Decision Making of the Shareholders and the Firms Listed on the Tehran Stock Exchange
This study mainly aims at investigating the impact of conservatism on the quality of the accounting information and decisions of the shareholders and the Tehran listed firms. To achieve this goal, the impact of conservatism on the three characteristics of relevancy, reliability and timeliness of the accounting information has been explored. The main objective of the study has been defined and examined in terms of one hypothesis along with the other subsidiary objectives. The present paper is an applied study using cross-sectional correlations. The required data is obtained from the whole firms listed on the Tehran Stock Exchange for six years covering the years from 2006 to 2011. The samples are selected by a filtering technique and finally 300 firms are chosen. The data and hypotheses are analyzed by using simple linear regression. The findings reveal that there is a relationship between conservatism and information quality. It is also documented that conservatism positively influences on each characteristic of relevancy, reliability and timeliness. Therefore, the market might become more efficient after requiring the timely reporting and providing transparent and complete financial statements. It contributes the investors and participants of the stock exchanges make appropriate decisions.
Volume (Year): 3 (2013)
Issue (Month): 3 (July)
|Contact details of provider:|| Web page: http://hrmars.com/index.php/pages/detail/Accounting-Finance-Journal|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Basu, Sudipta, 1997. "The conservatism principle and the asymmetric timeliness of earnings," Journal of Accounting and Economics, Elsevier, vol. 24(1), pages 3-37, December.
- Zhang, Jieying, 2008. "The contracting benefits of accounting conservatism to lenders and borrowers," Journal of Accounting and Economics, Elsevier, vol. 45(1), pages 27-54, March.
- Kousenidis, Dimitrios V. & Ladas, Anestis C. & Negakis, Christos I., 2009. "Value relevance of conservative and non-conservative accounting information," The International Journal of Accounting, Elsevier, vol. 44(3), pages 219-238, September.
- Givoly, Dan & Hayn, Carla, 2000. "The changing time-series properties of earnings, cash flows and accruals: Has financial reporting become more conservative?," Journal of Accounting and Economics, Elsevier, vol. 29(3), pages 287-320, June.
When requesting a correction, please mention this item's handle: RePEc:hur:ijaraf:v:3:y:2013:i:3:p:186-197. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Hassan Danial Aslam)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.