DOI: 10.36347/sjahss.2015.v03i08.014

Pages: 1362-1367

Employing better control through company managerial policies may lead to higher conservatism in financial lists so that we can make sure of the accuracy of information in financial lists and lack of any steps taken by managers for their own profit. The aim of this paper was to investigate the relation between governmental ownership and conditional accounting conservatism to evaluate. Conditional conservatism, Bal and Shiva Kumar model, based on commitment items was used. The subjects of the study were the companies accepted in Tehran Stock Exchange.Through random deleting, 83 companies were selected in the time period between 2006 and2011. To test the hypotheses, multiple linier regression and means comparison tests were employed. The results revealed that the percent of governmental ownership has a significant effect on conditional accounting conservatism and among the variables in the model (size of company and financial factor) which were controlled; the size of company had a direct relation with conditional conservatism while financial factor had a negative link with conditional conservatism in accounting.