چکیده:
One of the most important concepts in financial statement analysis and evaluation is conservatism. Thus recognition of the factors which influence conservatism can considerably help the investor in managing the selection of more conservative assets properly and avoiding the untrue exposure of financial statements. This research is about to consider the relation of effective factors on organizations’ conservatism that one of them is the portion of shares’ market value to shares’ book value. Data was collected from annual reports of listed companies on Tehran Stock Exchange during 2003-2009. The results of the study revealed that there was no significant relationship between earnings conservatism and price to book ratio.
خلاصه ماشینی:
"An Investigation of Relationship between Earnings Conservatism and Price to Book Ratio Based on Basu’s Method Mahdi Salehi∗ Behzad Ghorbani∗∗ Abstract One of the most important concepts in financial statement analysis and evaluation is conservatism.
: Earnings conservatism, Price to book ratio, Good news and Bad news Introduction Financial information is one of the most important principals at present human society.
Data analysis According to Basu,s (1997) method, in regression equation X it = βot + β1t R1t + εit variable xit is firm’s profit for fiscal year t, which is balanced by equity market value, in the beginning of fiscal year or in other words, the end of the fiscal year t-1.
The equation P = β BN ( p ) − β GN ( p ) measures earnings conservatism for a given portfolio, which is the difference between profit high sensitivity for firms’ good news incontrast with bad news in p portfolio in fiscal year t.
The equation P = β BN ( p ) − β GN ( p ) measures earnings conservatism for a given portfolio, which is the difference between profit high sensitivity for firms’ good news incontrast with bad news in p portfolio in fiscal year t.
The relationship of Price to book ratio and the relationship of profits and revenues Based on Basu's (1997) method, in the regression equation X it = βot + β1t R1t + εit , the variable xit for company profit has been shown for fiscal year of t, which has been balanced for the commence of fiscal year; i."