Abstract
Conservative is misinterpreted as capturing accountants 'tendency to require higher degree of verification for recognizing good news than bad news in financial statements. Under this interpretation of conservatism, earnings reflect bad news more quickly than good news. By using firms' stock returns to measure news, the asymmetric time lineless of recognizing good news and bad news can be examined as a measure of conservative behavior and as them an in question of this research in Irani and capital market. This research examines effect of composition of the board of directors of the companies listed in Tehran Stock Exchange (TSE) on conservative. Data analysis for seven years (2003-2010) shows that companies with a more in dependent board are more conservative. It means that these companies report bad news more timeliness than good news. The results of the research results confirm and reinforce previous researches.
Keywords
- Board of Directors Search this journal for Board of Directors (opens in a new tab)
- Bad News Search this journal for Bad News (opens in a new tab)
- Conservatism Search this journal for Conservatism (opens in a new tab)
- Good News Search this journal for Good News (opens in a new tab)
- TSE Search this journal for TSE (opens in a new tab)
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Copyright (c) 2012 Keramat Ollah Heydari Rostami, Hamed Omrani, Saber Samadi, Hamid Asadzadeh, Ahmad Kazemi Margavi, Hemad Nazari (Author)
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Keywords
- Board of Directors Search this journal for Board of Directors (opens in a new tab)
- Bad News Search this journal for Bad News (opens in a new tab)
- Conservatism Search this journal for Conservatism (opens in a new tab)
- Good News Search this journal for Good News (opens in a new tab)
- TSE Search this journal for TSE (opens in a new tab)
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