Thursday, 09 Apr, 2020

+91-9899775880

+91-9212715375

011-47044510

The Investigation of the Impact of Conditional and Unconditional Conservatism on Agency Cost in Tehran Stock Exchange

International Journal of Financial Management

Volume 3 Issue 3

Published: 2013
Author(s) Name: Saeid Jabbarzadeh Kangarlouei, Nasib Agazadeh Soltan Ahmadi, Morteza Motavassel | Author(s) Affiliation: Islamic Azad University, Iran
Locked Subscribed Available for All

Abstract

The aim of this study is to investigate the relationship between conservatism and agency costs in firms listed in Tehran Stock Exchange (TSE). To do so, a sample of 588 firms is selected as research sample for the period of 2004-2010 and fixed effect regression model is used to test hypotheses. C- i¡¡ score index is used to measure unconditional conservatism and Ball and Shivakumar (2005) model to measure conditional conservatism. Multiplying Tobin’s Q by free cash flow is considered a proxy for agency cost as independent variable. The results show that conditional conservatism has a negative and significant impact on agency cost while unconditional conservatism has a positive and significant impact.

Keywords: Conditional Conservatism, Unconditional Conservatism, Agency Costs

View PDF

Refund policy | Privacy policy | Copyright Information | Contact Us | Feedback © Publishingindia.com, All rights reserved