The Investigation Impact of Conditional and Unconditional Conservatism on Accounting Profit Transparency

摘要

The objective of this study, is the investigation impact of conditional and unconditional conservatism on accounting profit transparency in the Tehran stock exchange. Therefor, Basu and Givoly and Hayn Model have been used for conditional conservatism and unconditional conservatism and ability of profit explanation in the current period and current period profit changes for stock returns (Barth Model) have been used as index of accounting profit transparency. Moreover in this study, financial leverage, firm size is used as control variables. This is an applied and causal research considering its type and method. Tehran stock exchange listed firms constitute statistical population of the research. The sample was selected using systematic exclusion sampling method and imposing conditions of the research variables to 75 firms of 18 industries during 2006-2011. Statistical technique of panel data regression was used to analyze data and test the hypotheses. According to the results, conditional conservatism does significant and positive affect the accounting profit transparency and also unconditional conservatism does not affect the accounting profit transparency.