Test Conservatism in Accounting Policies and Earnings Response Coefficient Based on Accounting Variables

Document Type : Original Article

Authors
Khosro Faghani Makrani
Seyyed Hassan Salehnejad
Abbas Ramezanzadeh Zeidi
Abstract
The purpose of this study is to investigate the relationship between conservatism in accounting practices, earnings response coefficient companies accepted in Tehran Stock Exchange in the period 2009-2013. For this purpose, the systematic elimination of 142 companies have been selected as examples. This study is a descriptive - correlation and data used in this research is panel data. To test the hypotheses, a multiple regression model to select the most appropriate model of panel data was used from Chow and Hausman test. The results show that the conservatism in accounting policies and earnings response coefficient is negative and significant relationship.
Keywords
Conservatism Accounting
Earnings Response Coefficient
Earnings per Share