Studying the relat
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: [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. 11
Keywords: conditional
and unconditional conservatism, Altman's bankruptcy index
