THE LINK BETWEEN INFORMATION ASYMMETRY AND CONSERVATISM IN FINANCIAL REPORTING

Q: How can I download an article?

To download an article from SID, first log in to the site, search for the article title, and click on the 'Download Article' option.

Q: How can I download an ISI article?

To download an ISI article on SID, enter the keyword or article title in the search bar, view the relevant results, click on the desired article, and select the 'Download Article' option.

Q: How can I access the SID database?

To access the SID database, visit SID.ir, create an account, and log in to access scientific resources.

Q: Is downloading articles from SID free?

Some articles on SID are available for free, while others require payment. Details are specified on the article's page.

REZAZADEH JAVAD; AZAD A.A.

مرکز اطلاعات علمی Scientific Information Database (SID) - Trusted Source for Research and Academic Resources

Journal Paper

Paper Information

Journal: THE IRANIAN ACCOUNTING AND AUDITING REVIEW Year:2009 | Volume:15 | Issue:54 Page(s): 63-80

Download Full-Text

Persian Verion

View:

3,318

Download:

Cites:

Information Journal Paper

Title

THE LINK BETWEEN INFORMATION ASYMMETRY AND CONSERVATISM IN FINANCIAL REPORTING

Author(s)

REZAZADEH JAVAD | AZAD A.A. | Issue Writer Certificate

Keywords

INFORMATION ASYMMETRYQ2

CONSERVATISMQ2

GOOD NEWS AND BAD NEWSQ2

Abstract

The main goal of this paper is determining the link between INFORMATION ASYMMETRY among equity investors and CONSERVATISM in financial reporting. Because we argue that INFORMATION ASYMMETRY between equity 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.

Cites

References

Cite

APA: Copy

REZAZADEH, JAVAD, & AZAD, A.A.. (2009). THE LINK BETWEEN INFORMATION ASYMMETRY AND CONSERVATISM IN FINANCIAL REPORTING. THE IRANIAN ACCOUNTING AND AUDITING REVIEW, 15(54), 63-80. SID. https://sid.ir/paper/8187/en

Vancouver: Copy

REZAZADEH JAVAD, AZAD A.A.. THE LINK BETWEEN INFORMATION ASYMMETRY AND CONSERVATISM IN FINANCIAL REPORTING. THE IRANIAN ACCOUNTING AND AUDITING REVIEW[Internet]. 2009;15(54):63-80. Available from: https://sid.ir/paper/8187/en

IEEE: Copy

JAVAD REZAZADEH, and A.A. AZAD, “THE LINK BETWEEN INFORMATION ASYMMETRY AND CONSERVATISM IN FINANCIAL REPORTING,” THE IRANIAN ACCOUNTING AND AUDITING REVIEW, vol. 15, no. 54, pp. 63–80, 2009, [Online]. Available: https://sid.ir/paper/8187/en

Related Journal Papers