Information asymmetry, sticky costs and conditional accounting conservatism (case study of listed firms in Tehran Stock Exchange)

Abstract

This study examines impact of information asymmetry and sticky costs on conditional accounting conservatism. Study sample consisted of 141 firms listed on Tehran Stock Exchange between years 2006 to 2014. The statistical method used to test hypotheses in this research is multiple regression method. In the present study to determine reliability of test variables, Levin, Lin and Chu test is used. Findings indicate that there is a conditional conservatism in Tehran Stock Exchange. Also, there is a significant and negative relationship between conditional conservatism and conditional conservatism and there is no significant relationship information asymmetry and conditional conservatism.