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Soltan Ahmadi, Nasib Agazadeh
- The Investigation of the Impact of Conditional and Unconditional Conservatism on Agency Cost in Tehran Stock Exchange
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Authors
Affiliations
1 Department of Accounting, Science and Research Branch, Islamic Azad University, West Azarbyjan, IR
2 Tabriz Branch, Islamic Azad University, Tabriz, IR
3 Science and Research Branch, Islamic Azad University, West Azarbyjan, IR
1 Department of Accounting, Science and Research Branch, Islamic Azad University, West Azarbyjan, IR
2 Tabriz Branch, Islamic Azad University, Tabriz, IR
3 Science and Research Branch, Islamic Azad University, West Azarbyjan, IR
Source
International Journal of Financial Management, Vol 3, No 3 (2013), Pagination: 1-7Abstract
The aim of this study is to investigate the relationship between conservatism and agency costs in firms listed in Tehran Stock Exchange (TSE). To do so, a sample of 588 firms is selected as research sample for the period of 2004-2010 and fixed effect regression model is used to test hypotheses. C- scoreij index is used to measure unconditional conservatism and Ball and Shivakumar (2005) model to measure conditional conservatism. Multiplying Tobin's Q by free cash flow is considered a proxy for agency cost as independent variable. The results show that conditional conservatism has a negative and significant impact on agency cost while unconditional conservatism has a positive and significant impact.Keywords
Conditional Conservatism, Unconditional Conservatism, Agency Costs
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