Studying
Studying the relationship between conditional and unconditional conservatism with Altman's bankruptcy model index evidenced from Iran
Zahra Poorzamani, Neda Anhari
Department of Accounting, Assistant Professor, Central Tehran Banch, Islamic Azad University, Tehran, Iran
E- mail: zah[email protected]
Master of Accounting, Central Tehran Branch, Islamic Azad University, Tehran, Iran
E-mail: [email protected]
Abstract: Conservatism is one of the qualitative characteristics of financial reporting. Also regarding the fact that management uses less conservatism approaches strategically, in the present research we will study the relationship between conditional and unconditional conservatism with Altman's bankruptcy model index in firms accepted in Tehran Stock Exchange. To calculate conditional and unconditional conservatism we have used the models posed by Ball, Shiva Komar, Guili, and Hyne. In the present research 124 firms accepted in Tehran Stock Exchange during the time period between 2007 and 2011 were investigated. To test the hypotheses we have used a linear regression model. The research findings showed that there is a meaningless relationship between conditional conservatism and Altman's bankruptcy index but there is a meaningful and negative relationship between unconditional conservatism and Altman's bankruptcy index.
[Zahra Poorzamani, Neda Anhari. Studying the relationship between conditional and unconditional conservatism with Altman's bankruptcy model index evidenced from Iran. Life Sci J 2013;10(7s):64-69] (ISSN:1097-8135).http://www.lifesciencesite.com. 1
Keywords: conditional and unconditional conservatism, Altman's bankruptcy index
