نویسندگان
1 دانشگاه شهید بهشتی
2 دانشگاه جامع
چکیده
کلیدواژهها
عنوان مقاله [English]
نویسندگان [English]
Abstract: The role of Accounting Conservatism in corporate governance to mitigate agency problems associated with managers' investment decisions is proposed by Watts(2003), Ball and Shivakumar(2005) and Ahmed and Duellman (2010). These studies suggest that Accounting Conservatism can improve investment efficiency by reducing managers' incentives to take on negative NPV projects and doing corrective actions about poorly performing projects. Firms that use more conservative accounting will have higher future profitability than firms that use less conservative accounting.
In this research, we examined the relationship between Accounting Conservatism and future profitability, as a manifestation of investment decisions, in companies listed in Tehran Stock Exchange over the period 2001-2010. Consistent with Accounting Conservatism in improving investment decisions, we hypothesize Firms that use more conservative accounting will have higher future profitability than firms that use less conservative accounting. The findings of Regression Analysis show no significant relationship between Accounting Conservatism and future profitability. These results are not consistent with Ahmed and Duellman's(2010) findings. The results show that Accounting Conservatism has not important role in managers' investment decisions. So we suggest that Iranian Accounting Standards setters require increasing use of Conservatism to benefit the stockholders and other users to monitor the managers’ activities.
کلیدواژهها [English]
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