Investigation on the Association between conditional and unconditional Accounting conservatism and earning management
1.Master of Accounting, Persian Gulf International Educational Brunch-Islamic Azad University- khoramshahr -Iran
2. Assistant Professor of Accounting, Persian Gulf International Educational Branch -Shahid Chamran University. Ahvaz. Iran
3. Assistant Professor of Accounting, Persian Gulf International Educational Branch -Shahid Chamran University. Ahvaz. Iran
Abstract: The present study investigates the relationship between conditional and unconditional accounting conservatism and earning management in 279 companies listed in Tehran stock exchange for the period 1380 to 1388.it includes two hypotheses. In first hypotheses we examined the relationship between conditional conservatism and earnings management, and second hypotheses the relationship between unconditional conservatism and earnings management was investigated the first hypotheses statistical analysis was estimated using pooled (combined) data. Result of the models estimation with a fixed effects approach shows that the variable "earnings management" has a significant effect on the measure of conditional conservatism. This indicates that conditional conservatism and earnings management are significantly associated. To test the second hypotheses, it was estimated using pooled data. A result of the second hypotheses with a bound approach shows that there is a significant relationship between unconditional conservatism and earnings management. IN other words, we can say that companies providing conservative financial reporting may have more earnings management.
[Mohammad Nesarvand, seyed ali vaez, Mohammad ramezan ahmadi. Investigation on the Association between conditional and unconditional Accounting conservatism and earning management. J Am Sci 2013;9(6):54-61]. (ISSN: 1545-1003). http://www.jofamericanscience.org. 7
Keywords: conditional conservatism, unconditional conservatism, earnings management, discretionary accruals, Non-discretionary accruals. Full Text 7