Allameh Tabataba’i University Empirical Studies in Financial Accounting 2821-0166 15 57 2018 03 21 Presenting a Sustainable Model of Basu Conservatism Using the GMM-sys Method Presenting a Sustainable Model of Basu Conservatism Using the GMM-sys Method 95 122 8915 10.22054/qjma.2018.8915 FA Farhad Fallahnezhad Ph.D. Student, Accounting Department, Mazandaran University Hossien Fakhari Associate Professor, Accounting Department, Mazandaran University Shahriar Zaroki Assistant Professor, Economics Department, Mazandaran University Journal Article 2017 09 23 To explain the estimation of conservatism as a limiting covenant in accounting, the current paper discussed Basu (1997) conservatism model and Nichols (2010) generalized conservatism model and examined the problems about these models  as regards the validity and generalizability of the results of the research on this topic .Accordingly, the discussed problems were explained and the solutions for solving these problems and upgrading the model to estimate conservatism were presented. The data from 2006 to 2016 on 87 corporations were used to carry out the investigations. Also, in addition to the static routine estimator, the dynamic panel estimator (the GMM-sys method) was used to test and estimate the models. The current research results revealed that the new modified conservatism estimation  model yielded more appropriate results than the original Basu model and Nichols generalized model. Moreover, it indicated that the dynamic method of model estimation is more suitable than the static one. Finally, the current research showed that the results of the previous research conducted using Basu model to measure conservatism should be considered more cautiously and their application in the capital markets calls for re-examination To explain the estimation of conservatism as a limiting covenant in accounting, the current paper discussed Basu (1997) conservatism model and Nichols (2010) generalized conservatism model and examined the problems about these models  as regards the validity and generalizability of the results of the research on this topic .Accordingly, the discussed problems were explained and the solutions for solving these problems and upgrading the model to estimate conservatism were presented. The data from 2006 to 2016 on 87 corporations were used to carry out the investigations. Also, in addition to the static routine estimator, the dynamic panel estimator (the GMM-sys method) was used to test and estimate the models. The current research results revealed that the new modified conservatism estimation  model yielded more appropriate results than the original Basu model and Nichols generalized model. Moreover, it indicated that the dynamic method of model estimation is more suitable than the static one. Finally, the current research showed that the results of the previous research conducted using Basu model to measure conservatism should be considered more cautiously and their application in the capital markets calls for re-examination https://qjma.atu.ac.ir/article_8915_a422e60213322845b85ae122de53269f.pdf