the link between information asymmetry and conservatism in financial reporting

نویسندگان

جواد رضا زاده

دانشگاه بین المللی قزوین عبد اله آزاد

چکیده

the main goal of this paper is determining the link between information asymmetry among equity investors and conservatism in financial reporting. becouse we argu that information asymmetry between equeity investors generates accounting conservatism in financial statements. conservatism reduces the manager's incentives and ability to manipulate accounting numbers and so reduces agency costs that information asymmetry generates. in this paper the bid-ask spread and basu coefficient is used respectively as measures of information asymmetry and conservatism. our statistical population is the firms listed in tehran stock exchange that examined for the time period 1381 to 1385 by 81 firms as the sample. the results of empirical tests indicate that information asymmetry among equity investors is significantly positively related to conservatism. further, the results indicate that changes in information asymmetry between equity investors lead changes in conservatism. this result shows that as the consequence of the increase in the information asymmetry between investors, the demand for conservatism increases. these results confirm the usefulness of conservatism as a qualitative characteristic of financial statements.

برای دسترسی به متن کامل این مقاله و 10 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

منابع مشابه

Financial Reporting, Regulation and Information Asymmetry

Financial Reporting, Regulation and Information Asymmetry

متن کامل

Investment and Financial Reporting with Two-Dimensional Information Asymmetry

This paper analyzes the real consequences of making a firm’s executives more accountable for the fidelity of a firm’s financial reports using a basic model of investment under asymmetric information with reporting. Greater accountability generally leads to less underinvestment but more overinvestment. The level of accountability that maximizes investment efficiency is low enough to allow some m...

متن کامل

Examining the changes of conservatism in financial reporting with emphasis on the time-series changes of accruals and MTB

Review the literature of conservatism in financial reporting indicates the importance of conservatism in accounting profession. Researchers have always tried to determine the degree and ways of conservatism in financial reporting and accounting, although this is not done easily, because there is not a direct measure of conservatism. However, conservatism has been one of the key principles in ac...

متن کامل

Excellence of Financial Reporting Information and Investment Productivity

Objective –This study intends to examine the relationship between investment efficiency and financial information excellence. The study is also examining the moderating impact of sustainability on the relation between excellence in financial information and investment productivity. Methodology –The cumulative measurements are 668 firm-years and are made up of 257 subsamples of underinvestment a...

متن کامل

Financial Blogs and Information Asymmetry between Firm Insiders and Outsiders

Online networks of investors, analysts, and the media have come to play a critical role in capital markets. I use the latest cybermetric tools from the social sciences to examine how important such virtual networks are—and particularly top financial blogs—in determining market efficiency and information asymmetry between insiders and outsiders. Paper prepared for presentation at the annual meet...

متن کامل

Balance sheet conservatism and audit reporting conservatism

1Division of Accounting, School of Business, NanyangBusiness School, Nanyang Technological University, Singapore 2Leventhal School of Accounting,Marshall School of Business, University of SouthernCalifornia, USA Correspondence Clive Lennox, Leventhal School ofAccounting, Marshall School ofBusiness,University of SouthernCalifornia, 3670TrousdaleParkway, Los Angeles,CA90089,USA. Email: clennox@us...

متن کامل

ذخیره در منابع من


  با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی راحت تر خواهید کرد

دانلود متن کامل

برای دسترسی به متن کامل این مقاله و 10 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

عنوان ژورنال:
بررسی های حسابداری و حسابرسی

جلد ۱۶، شماره ۱، صفحات ۰-۰

copyright © 2015-2021