Volume 2, Issue 3 (8-2020)
sjamao 2020, 2(3): 1-16 |
Back to browse issues page
Download citation:
BibTeX | RIS | EndNote | Medlars | ProCite | Reference Manager | RefWorks
Send citation to:
BibTeX | RIS | EndNote | Medlars | ProCite | Reference Manager | RefWorks
Send citation to:
Jodatzagloujeh M R, Mohammadzadeh Saleteh H. An Investigation the Relationship between Board Efficiency and Accounting Conservatism. sjamao 2020; 2 (3) :1-16
URL: http://sjamao.srpub.org/article-7-43-en.html
URL: http://sjamao.srpub.org/article-7-43-en.html
Department of Accounting,¬Marand Branch, Islamic Azad University, Marand, Iran
Abstract: (1830 Views)
In this research, it was paid to the investigation the relationship between board efficiency and accounting conservatism of listed companies in Tehran Stock Exchange during 2006-2012. To do this study, 109 listed companies in TSE were selected in mentioned period. Pooled/panel regression analyses in software EViews 6 were applied to test of research hypotheses. Exerted independence variables are different criteria of board efficiency contain CEO Membership in Board (CEOMB), Outside Board (OB), Board Ownership (BO), Financial Specialist in Board (FSB), and No. Meetings of Board (NMB). The dependent variable is Conservatism Index (CI) based on Givoly &Hayn (2000) model in this study. Also, company size (SIZE), financial Leverage (LEV), and Market to Book Value (MTB) were applied as control variables. Findings indicate that the effect of OB on CI is positive and significant in total companies level. Other results show the positive and significant effects of SIZE and MTB on CI, and the negative and significant effect of LEV on it.
Type of Study: Research |
Subject:
Accounting
Received: 2020/02/18 | Revised: 2020/06/28 | Accepted: 2020/07/21 | Published: 2020/08/1
Received: 2020/02/18 | Revised: 2020/06/28 | Accepted: 2020/07/21 | Published: 2020/08/1
References
1. Ahmed, A. S., & S. Duellman (2007). "Accounting Conservatism and Board of Director Characteristics: An Empirical Analysis", Journal of Accounting and Economics, Vol. 43, 411-37. [DOI:10.1016/j.jacceco.2007.01.005]
2. Ahmed, A. S.; Billings, B.; Morton, R.; & M. Stanford (2002). "The Role of Accounting Conservatism in Mitigating Bondholder-Shareholder Conflicts over Dividend Policy in Reducing Debt Costs", the Accounting Review, Vol. 77, 867-90. [DOI:10.2308/accr.2002.77.4.867]
3. Ahmed, A.S., & S. Duellman (2013). "Managerial Overconfidence and Accounting Conservatism", Journal of Accounting Research, Vol. 51, No. 1, 1-30. [DOI:10.1111/j.1475-679X.2012.00467.x]
4. Ball, R. (2001). "Infrastructure requirements of an economically efficient system of public financial reporting and disclosure", Brookings-Wharton Papers on Financial Services, 127-169. [DOI:10.1353/pfs.2001.0002]
5. Ball, R., & L. Shivakumar, (2005). "Earnings quality in UK private firms: Comparative loss recognition timeliness", Journal of Accounting and Economics, Vol. 39, 83-128. [DOI:10.1016/j.jacceco.2004.04.001]
6. Basu, S. (1997). "The Conservatism Principle and the Asymmetric Timeliness of Earnings", Journal of Accounting and Economics, Vol. 24, No. 1, 3-37. [DOI:10.1016/S0165-4101(97)00014-1]
7. Byrd, J. W., and K. A. Hickman (1992). Do outside directors monitor managers? Evidence from tender. [DOI:10.1016/0304-405X(92)90018-S]
8. Fama, E., & M. C. Jensen (1983). Separation of ownership and control, Journal of Law and Economics, Vol. 26, 301-325. [DOI:10.1086/467037]
9. García-Lara, J. M.; Garcia-Osma, B., & F. Penalva (2009). "The Economic Determinants of Conditional Conservatism", Journal of Business Finance & Accounting, Vol. 36, 336-372. [DOI:10.1111/j.1468-5957.2008.02122.x]
10. Garcia-Lara, J.; Garcia-Osman B.; & F. Penalva (2009). "Accounting Conservatism and Corporate Governance", Review of Accounting Studies, Vol. 14, 161-201. [DOI:10.1007/s11142-007-9060-1]
11. Givoly, D. & C. Hayn (2000). "The Changing Time-Series Properties of Earnings, Cash Flows and Accruals: Has Financial Reporting Become More Conservative?", Journal of Accounting and Economics, Vol. 29, 287- 320. [DOI:10.1016/S0165-4101(00)00024-0]
12. Givoly, D.; Hayn, C., & A. Natarajan (2007). "Measuring reporting conservatism", The Accounting Review, Vol.82, 65-106. [DOI:10.2308/accr.2007.82.1.65]
13. Hoo, J. (2009). Association between Board Characteristics and Accounting Conservatism: Empirical Evidence from Malaysia, Auckland University of Technology (AUT). Online, http://www.ssrn.com.
14. Kahneman, D., & D. Lovallo (1993). "Timid Choices and Bold Forecasts: A Cognitive Perspective on Risk Taking", Management Science, Vol. 39, 17-31. [DOI:10.1287/mnsc.39.1.17]
15. Krishnan, G, and G. Visvanathan (2008). "Does the SOX Definition of an Accounting Expert Matter? The Association between Audit Committee Directors' Accounting Expertise and Accounting Conservatism", Journal of Contemporary Accounting Research 25: 827-857. [DOI:10.1506/car.25.3.7]
16. LaFond, R., and S. Roychowdhury (2008). "Managerial ownership and accounting conservatism", Journal of Accounting Research 46: 101-135. [DOI:10.1111/j.1475-679X.2008.00268.x]
17. Li, J. (2009). Accounting Conservatism and Debt Contract: Efficient Liquidation and Covenant Renegotiation. [DOI:10.2139/ssrn.1147924]
18. Watts, R. (2003). "Conservatism in accounting Part II: Evidence and research opportunities", Accounting Horizons, Vol. 17, No. 4, 287-301. [DOI:10.2308/acch.2003.17.4.287]
19. Watts, R. L. (2003). "Conservatism in Accounting- Part 1: Explanations and Implications", Accounting Horizons, Vol. 17, No. 3, 207-221. [DOI:10.2308/acch.2003.17.3.207]
20. Xia D., S. Zhu (2009). "Corporate Governance and Accounting Conservatism in China", CHINA JOURNAL OF ACCOUNTING RESEARCH, Vol. 2, No. 2, 81-108. [DOI:10.1016/S1755-3091(13)60015-5]
Send email to the article author
| Rights and permissions | |
 |
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. |