The Effect of Accounting Conservatism, governmental ownership, firm size and financial leverage on unprofitability of Companies
In this paper, we examine relation between accounting losses and accounting conservatism over a 7- period in 48 loss firms in Tehran Stock Exchange. We report evidence that accounting conservatism and firm size have a positive relation and financial leverage has a negative relation with accounting l...
| Main Authors: | , |
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| Format: | Article |
| Language: | fas |
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University of Tehran
2010-02-01
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| Series: | بررسیهای حسابداری و حسابرسی |
| Subjects: | |
| Online Access: | https://acctgrev.ut.ac.ir/article_20800_bdbcb3f2974ebfdb736e94890d2ac391.pdf |
| _version_ | 1818759084043665408 |
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| author | Bahman Bani Mahd Tahmineh Baghbani |
| author_facet | Bahman Bani Mahd Tahmineh Baghbani |
| author_sort | Bahman Bani Mahd |
| collection | DOAJ |
| description | In this paper, we examine relation between accounting losses and accounting conservatism over a 7- period in 48 loss firms in Tehran Stock Exchange. We report evidence that accounting conservatism and firm size have a positive relation and financial leverage has a negative relation with accounting losses. there is no relation between accounting losses and governmental ownership in study sample. Our findings contribute to the literature on accounting conservatism and they implicate that conservatism is likely to be an efficient financial reporting mechanism to increase firm value in a long term period because it restrict opportunistic payment to managers and other contracting parties. The increased firm value is shared among all parties to the firm increasing everyone’s welfare. In that sense, conservatism is an efficient contracting mechanism. |
| first_indexed | 2024-12-18T06:37:06Z |
| format | Article |
| id | doaj.art-ceef6fcbe2b945dba337307e9bd6c69d |
| institution | Directory Open Access Journal |
| issn | 2645-8020 2645-8039 |
| language | fas |
| last_indexed | 2024-12-18T06:37:06Z |
| publishDate | 2010-02-01 |
| publisher | University of Tehran |
| record_format | Article |
| series | بررسیهای حسابداری و حسابرسی |
| spelling | doaj.art-ceef6fcbe2b945dba337307e9bd6c69d2022-12-21T21:17:46ZfasUniversity of Tehranبررسیهای حسابداری و حسابرسی2645-80202645-80392010-02-0116420800The Effect of Accounting Conservatism, governmental ownership, firm size and financial leverage on unprofitability of CompaniesBahman Bani Mahd0Tahmineh Baghbaniدانشگاه آزاد اسلامیIn this paper, we examine relation between accounting losses and accounting conservatism over a 7- period in 48 loss firms in Tehran Stock Exchange. We report evidence that accounting conservatism and firm size have a positive relation and financial leverage has a negative relation with accounting losses. there is no relation between accounting losses and governmental ownership in study sample. Our findings contribute to the literature on accounting conservatism and they implicate that conservatism is likely to be an efficient financial reporting mechanism to increase firm value in a long term period because it restrict opportunistic payment to managers and other contracting parties. The increased firm value is shared among all parties to the firm increasing everyone’s welfare. In that sense, conservatism is an efficient contracting mechanism.https://acctgrev.ut.ac.ir/article_20800_bdbcb3f2974ebfdb736e94890d2ac391.pdfaccounting lossesfirm size and financial leveragegovernmental ownershiploss firmsAccounting Conservatism |
| spellingShingle | Bahman Bani Mahd Tahmineh Baghbani The Effect of Accounting Conservatism, governmental ownership, firm size and financial leverage on unprofitability of Companies بررسیهای حسابداری و حسابرسی accounting losses firm size and financial leverage governmental ownership loss firms Accounting Conservatism |
| title | The Effect of Accounting Conservatism, governmental ownership, firm size and financial leverage on unprofitability of Companies |
| title_full | The Effect of Accounting Conservatism, governmental ownership, firm size and financial leverage on unprofitability of Companies |
| title_fullStr | The Effect of Accounting Conservatism, governmental ownership, firm size and financial leverage on unprofitability of Companies |
| title_full_unstemmed | The Effect of Accounting Conservatism, governmental ownership, firm size and financial leverage on unprofitability of Companies |
| title_short | The Effect of Accounting Conservatism, governmental ownership, firm size and financial leverage on unprofitability of Companies |
| title_sort | effect of accounting conservatism governmental ownership firm size and financial leverage on unprofitability of companies |
| topic | accounting losses firm size and financial leverage governmental ownership loss firms Accounting Conservatism |
| url | https://acctgrev.ut.ac.ir/article_20800_bdbcb3f2974ebfdb736e94890d2ac391.pdf |
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