Investigation of the Relationship between Shareholders Conflict over Dividend Policy and Accounting Conservatism in Tehran Stock Exchange

Abstract

Present research examines the relation between shareholders conflict over dividend policy and accounting conservatism in Tehran Stock Exchange, Shareholders conflict is proxied by dividend and majority shareholders control rights. In this research, Investigation all firms in Tehran Stock Exchange that serves the annual reports for the years 2010 through 2013. In a total the selection 125 firms of different industries. The test of the proposed hypotheses conducted on a panel data. In a total research results show that dividends have positive effect on accounting conservatism. Majority shareholders, control rights also affect accounting conservatism. These results deepen the empirical evidence for Agency Theory from Agency Conflict Type II and prove that accounting conservatism made by management on concentrated ownership is under the control of majority shareholders. Therefore, majority shareholders can increase their utilities through the hands of management.