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This research is considering the assessment of relation between conservativeness in accounting and capital expenses among approved companies in the stock market. The conservativeness is being measured based on asymmetric timeliness of earning which is criterion of profit and loss,and also it is based on the value of market to the value of share book which is criterion of balance sheet.Therefor in this research, the relation between capital expenses and conservativeness is being measured with considering of these two criterions.
Based on information of the financial notes and shares prices of 86 approved companies in the stock market in negotiable papers during 1380 till 1387 and also by using of the linear poly variant regression analysis and with the help of SPSS, research shows that there is a negative relation between capital expenses based on the portofvey of companies and conservativeness based on the asymmetric timeliness of earning.
Another result is this fact that based on the ratio of market value to book value of stocks,there is a positive and meaningful relation between the capital expenses and the conservativeness.
The reason of different reaction in the capital expenses in regard to the two criterions of conservativeness is due to the difference between the structure of these two criterions.As a matter of fact, the reason is because the asymmetric timeliness of earning is a profit and loss criterion, while the ratio of market value to book value is a balance sheet criterion.
Islamic Azad University
Faculty of Management-Department of Accounting
The Assessment of Relation Between Conservatineness in Accounting and Capital Expenses Among Approved Companies in Tehran Negotiable Papers Stock Market
M.R. Setayesh Ph.D.
M.H. Janani Ph.D.
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