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The Relationship between Conditional Conservatism and Financial Crisis

Author

Listed:
  • Behnam Aminpour Mamaghani
  • Roya Darabi

Abstract

Profit and loss invoice is the main accounting information. Investors pay the priority attention to net profit as the latest information item of profit and loss invoice. Conservatism has a great influence on investment and companies’ financial crisis. The main purpose of this research is studying the relationship between conditional conservatism and financial crisis in accepted companies in Tehran Stock Exchange during time period of 2009 up to 2014. Statistical society is used by screening (omissive) model for selecting a sample which is studied in 122 companies. Current research methodology is applicative by aiming, its type is correlated, its model is panel data and for analysis by software of EVIEWS8. Also, obtained result by first subsidiary hypotheses represent a straight relationship between firm size and companies’ financial crisis and second subsidiary hypotheses represent a straight relationship between financial leverage and companies’ financial crisis. There is not a meaningful relationship between reserved cash fund and financial crisis in third subsidiary hypotheses. There is a meaningful relationship between sale growth and financial crisis in forth subsidiary hypotheses. There is a straight and meaningful relationship between tangible properties and financial crisis in fifth subsidiary hypotheses. In sixth subsidiary hypotheses, there is a negative and meaningful relationship between growth opportunity and financial crisis.

Suggested Citation

  • Behnam Aminpour Mamaghani & Roya Darabi, 2016. "The Relationship between Conditional Conservatism and Financial Crisis," Asian Social Science, Canadian Center of Science and Education, vol. 12(6), pages 1-47, June.
    • Handle: RePEc:ibn:assjnl:v:12:y:2016:i:6:p:47
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    References listed on IDEAS

    as
    1. Deakin, Eb, 1972. "Discriminant Analysis Of Predictors Of Business Failure," Journal of Accounting Research, John Wiley & Sons, Ltd., vol. 10(1), pages 167-179.
    2. Francis, Bill & Hasan, Iftekhar & Wu, Qiang, 2013. "The benefits of conservative accounting to shareholders : Evidence from the financial crisis," Research Discussion Papers 8/2013, Bank of Finland.
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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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