Accounting Conservatism in a Setting of Information Asymmetry between Majority and Minority Shareholders in Tehran Stock Exchange Market (TSEM)

摘要

This paper examines the relation between information asymmetry (as measured by PIN, probability of information-based trading) and accounting conservatism. In order to explore relation between PIN level and Effect of PIN changes on conservatism. In addition examin Effect of auditor tenure on the relation between PIN level and conservatism.In order to do the studies, 135 listed Tehran Stock Exchange. Companies during the 2005-2012 were chosen. It is shown that a positive relation between Conservatism on PIN level and Effect of PIN changes. In addition we find, however, that the effect of PIN appears weaker when auditor tenure is taken into account, thus supplementing their conclusions.