|
The Impact of Conservatism on Persistence of Accruals
|
Gholam-Hossein Assadi1   , Mohammad Mahdi Naderi Nooreini1 , Mansour Sarfaraz *1 |
| 1- Shahid Beheshti University |
|
|
Abstract: (2463 Views) |
| Accounting conservatism implies a timely recognition of transitory losses, hence it causes the recognition of transitory losses and reduces persistence of earning, so it can reduce the persistence of accruals because conservatism is applied in financial reporting by accruals. Therefore, this research aimed to investigate the impact of conservatism on total accrual and its component persistence. This investigation was performed by using Khan and Watts model (2009) for measuring the conservatism and Richardson et al model (2005) to measure accruals. A sample of 153 listed companies in the Tehran Stock Exchange (TSE), in the period of 2007-2016 was selected. Results showed that conservatism negatively affect on persistence of total accruals but it hasn’t significant affect on accrual components. |
|
| Keywords: Conservatism, Accrual persistence, Accrual Components, Accrual Reliability. |
|
|
Full-Text [PDF 891 kb]
(702 Downloads)
|
|
Type of Study: Research |
Subject:
Special
|
|
|
|
|
|
|
| Send email to the article author |
|
|
|
| Add your comments about this article |
|
|
|
