Ahmad Ahmadpour; Masoumeh Shahsavari; Alireza amoozad Khalili
Abstract
In the age that firms deal with various challenges, financial safety and theFactors which end with recession are of great importance. Along with thefact mentioned, the present study considers the investigation of the effect ofconditional conservatism and accounting-based earnings attributes on risk ofbankruptcy ...
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In the age that firms deal with various challenges, financial safety and theFactors which end with recession are of great importance. Along with thefact mentioned, the present study considers the investigation of the effect ofconditional conservatism and accounting-based earnings attributes on risk ofbankruptcy in Firms Listed at the Tehran Stock Exchange. The Z’altman isused for measuring the risk of bankruptcy and accruals quality, earningspersistence, earnings predictability, and earnings smoothness used formeasuring the Accounting-based Earnings Attributes.The results ofestimating of research hypotheses using the panel data techniques in eviewssoftware for 126 firm of Tehran’s Stock Exchange during a period of fiveyears from 2010 To 2014, suggest that not only using the accountingconditional conservatism does not make any important change in decreasingof risk of bankruptcy, but also it is able to increase the financial distress ofIranian firms. Also, the result show the significant negative relation betweenthe accounting-based earnings attributes (Accruals quality, persistence andpredictability) with risk of bankruptcy of firms. Generally, The results revealthat risk of bankruptcy of firms are mostly influenced by economicalcondition of the country, the politics of financing, the size of the firms, thesort of industry ,and improvement of accounting-based earnings attributesrather than conditional conservatism approaches.
