The study of effects of accounting conservatism on the flexibility of the financial decisions
Journal Title: International Research Journal of Applied and Basic Sciences - Year 2013, Vol 4, Issue 1
Today, by increasingly rapid changes in the internal and external factors affecting organizations, the increased flexibility of them toward such changes is imperative. In today's competitive world, flexibility is a key factor for the survival of organization and a tool to dominate competitors. Therefore, this study attempts to examine the relation between accounting conservatism and flexibility in financial decisions, such as liquidity, decisions on stock or debt issuance and the sensitivity of investment cash flows. Therefore some hypotheses were tested during the period 2001 to 2010. The statistical sample consisted of 100 companies operating in different parts of Tehran Stock Exchange which are selected considering five limitations and by a screening method. The test procedure which was analyzed using Eviews software is correlation analysis, and the relationship between dependent and independent variable is estimated using panel data. The results indicate that at time interval of the study and at confidence interval of 95% in the manufacturing companies at Tehran Stock Exchange Market, conservative accounting has a direct and significant relationship with liquidity management, and a significant and inverse relationship with the sensitivity of investment cash flows. In addition, there is not any significant relationship between conservative accounting, decisions on the distribution of cash dividends and decision to issue shares and using debt.
Authors and Affiliations
Koroush Ghavi| Department of Accounting, the Sciences and Research Branch, Islamic Azad University, Tehran, Iran,[email protected], Yousef Najafi| Department of Management, Kermanshah Branch, Islamic Azad University, Kermanshah, Iran, Aziz Arfai| Department of Management, Kermanshah Branch, Islamic Azad University, Kermanshah, Iran
The Role of Knowledge Management on Marketing Intelligence of Employees of an Organization(Case Study: Insurance Companies of Mazandaran Province)
The importance of knowledge as an important and valuable property for contemporary organizations has generated the situations in which, the method to obtain, develop, govern and promote knowledge suitably is changed to o...
Migraine and epilepsy are among the most common neurological diseases, share several characteristics, including specific clinical features, overlapping pathophysiological mechanisms, and treatment. It seems these two con...
Optimal design of hybrid water-wind-solar system based on hydrogen storage and evaluation of reliability index of system using ant colony algorithm
In the current research, feasibility study of using renewable energy resources in isolated regions is conducted independently from the power distribution grid and aimed at supplying electricity at lower cost and taking i...
Identification and Ranking of Factors affecting the implementation of Knowledge Management based on TOPSIS Technique
Knowledge management is one of the most interesting and challenging issues of the management in the new millennium. Educational and research centers are the most suitable places for the implementation of knowledge manage...
The New Boundary Condition Effect on The Free Vibration Analysis of Micro-beams Based on The Modified Couple Stress Theory
Based on the modified couple stress theory, the free vibration behavior of micro scale Bernoulli-Euler cantilever beam carrying an added mass is analytically investigated. In this study the non-dimensional frequency equa...
How To Cite
Koroush Ghavi, Yousef Najafi, Aziz Arfai (2013). The study of effects of accounting conservatism on the flexibility of the financial decisions. International Research Journal of Applied and Basic Sciences, 4(1), 131-138. https://europub.co.uk/articles/-A-5284