Identifying Bankruptcy Using Accounting Conservatism (different analysis and model presentation)

Document Type : Original Article

Authors
saleh asadi 1
Fraydoon Rahnamay Roodposhti 2
sina kherdyar 3
fazel MOHAMMADI NODE 4
1 Department of Accounting, Qazvin Branch, Islamic Azad University, Qazvin, Iran.
2 Professor, Department of Accounting, Science and Research Branch, Islamic Azad university, Theran, Iran.
3 Assistant Professor, Department of Accounting, Rasht Branch, Islamic Azad University, Rasht, Iran.
4 Assistant Professor, Department of Management, Lahijan Branch, Islamic Azad University, Lahijan, Iran.
Abstract
The present study presents a bankruptcy forecasting model using accounting conservatism. The statistical population of the study includes companies listed on the Tehran Stock Exchange during the years 2007 to 1397, of which 122 companies were considered as the statistical sample of the study. The research method is causal and the method of data collection in the theoretical literature section is based on library studies and in the test hypotheses testing section is based on financial statement documentation. In general, the statistical method used in this study is logistic regression method. In this study, the most consistent measure of conservatism with various types of bankruptcy prediction models has been identified and according to the results of data analysis showed that each of the accounting conservatism criteria (conditional and unconditional) bankruptcy predictability of companies But their predictability and predictability depended on how the company went bankrupt. The results showed that unconditional conservatism through Altman model has the highest power in predicting the bankruptcy status of companies and the ability to predict bankruptcy to the criterion of accounting conservatism has also shown different sensitivities.
Keywords
Accounting conservatism
bankruptcy
predictive power
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