Since 2014
Studying the Relationship between Conservative Accounting and the Criterion of Corporate Performance Assessment
Euro-Asian Journal of Economics and Finance
View Archive Info| Field | Value | |
| Title |
Studying the Relationship between Conservative Accounting and the Criterion of Corporate Performance Assessment
|
|
| Creator |
Darash, Fereshteh
|
|
| Subject |
Conservatism, Return on investment, accruals, operational cash, Stock Exchange
|
|
| Description |
Conservatism is the cautious response of accountants to the uncertain and unknown conditions, for timely and reliable information and also to respond to legal and environmental accountability. Conservative tries to minimize estimations risk in calculation of profit and it leads to increase the profit quality. The return on investment (ROI) ratio is one of the financial ratios that is used to measure the company’s performance and it is considered as a criterion for measuring the created value for shareholders. Accordingly, the degree of conservatism can have a significant impact on this ratio. This study tried to examine the relationship between conservatism and return on investments ratios. And Basu model (1997) is used for measuring the conservatism. It also examined the relationship between conservatism of accruals and conservatism of operational cash with return on investment ratio by using the correlations tests. The findings of this research indicated an inverse relation between conservatism of net income and accruals with return on the investment. Also, the relation between operational cash and changes in ROI is not statistically significant.
|
|
| Publisher |
Academy of Business & Scientific Research
|
|
| Contributor |
—
|
|
| Date |
2014-03-30
|
|
| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
|
| Format |
application/pdf
|
|
| Identifier |
http://absronline.org/journals/index.php/eajef/article/view/177
|
|
| Source |
Euro-Asian Journal of Economics and Finance; Vol 2, No 2 (2014): April; 108-118
2310-4929 2310-0184 |
|
| Language |
eng
|
|
| Relation |
http://absronline.org/journals/index.php/eajef/article/view/177/198
|
|
| Rights |
Copyright (c) 2014 Euro-Asian Journal of Economics and Finance
|
|