Relationship between Debt Ratio, Size and Cost of Capital of Firm with Conditional and Unconditional Conservatism

In this study, the relationship between factors including debt ratio, size and capital cost of firm with conditional and unconditional conservatism in the Tehran Stock Exchange is investigated. The model of Ahmed and Duellman (2007) and the model of Givoly and Hayn (2000) were used to measure the co...

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Autores principales:	Majid shahbazi, Bita Mashayekhi
Formato:	article
Lenguaje:	FA
Publicado:	Shahid Bahonar University of Kerman 2014
Materias:	debt ratio size cost of capital conditional conservatism unconditional conservatism Accounting. Bookkeeping HF5601-5689
Acceso en línea:	https://doaj.org/article/2210a85b716e406a9395523aba3ac85f
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spelling	oai:doaj.org-article:2210a85b716e406a9395523aba3ac85f2021-11-04T19:46:52ZRelationship between Debt Ratio, Size and Cost of Capital of Firm with Conditional and Unconditional Conservatism2008-89142476-292X10.22103/jak.2014.660https://doaj.org/article/2210a85b716e406a9395523aba3ac85f2014-05-01T00:00:00Zhttps://jak.uk.ac.ir/article_660_5abbdb267e62292beb9ca930a2716876.pdfhttps://doaj.org/toc/2008-8914https://doaj.org/toc/2476-292XIn this study, the relationship between factors including debt ratio, size and capital cost of firm with conditional and unconditional conservatism in the Tehran Stock Exchange is investigated. The model of Ahmed and Duellman (2007) and the model of Givoly and Hayn (2000) were used to measure the conditional and unconditional conservatisms, respectively. The statistical sample included data from 91 companies, which is collected and analyzed for the period 1383 to 1390. The data analysis of panel data within a fixed effects model was employed. The results show that there is a significant positive relationship between debt ratio and both the conditional and unconditional conservatisms. This confirms the hypothesis that debt contracts are the most important sources of demand for conservatism. Also, there is a significant negative relationship only between firm size and unconditional conservatism, and that there is no relationship between cost of capital and both the conditional and unconditional conservatisms.Majid shahbaziBita MashayekhiShahid Bahonar University of Kermanarticledebt ratiosizecost of capitalconditional conservatismunconditional conservatismAccounting. BookkeepingHF5601-5689FAمجله دانش حسابداری, Vol 5, Iss 16, Pp 33-54 (2014)
institution	DOAJ
collection	DOAJ
language	FA
topic	debt ratio size cost of capital conditional conservatism unconditional conservatism Accounting. Bookkeeping HF5601-5689
spellingShingle	debt ratio size cost of capital conditional conservatism unconditional conservatism Accounting. Bookkeeping HF5601-5689 Majid shahbazi Bita Mashayekhi Relationship between Debt Ratio, Size and Cost of Capital of Firm with Conditional and Unconditional Conservatism
description	In this study, the relationship between factors including debt ratio, size and capital cost of firm with conditional and unconditional conservatism in the Tehran Stock Exchange is investigated. The model of Ahmed and Duellman (2007) and the model of Givoly and Hayn (2000) were used to measure the conditional and unconditional conservatisms, respectively. The statistical sample included data from 91 companies, which is collected and analyzed for the period 1383 to 1390. The data analysis of panel data within a fixed effects model was employed. The results show that there is a significant positive relationship between debt ratio and both the conditional and unconditional conservatisms. This confirms the hypothesis that debt contracts are the most important sources of demand for conservatism. Also, there is a significant negative relationship only between firm size and unconditional conservatism, and that there is no relationship between cost of capital and both the conditional and unconditional conservatisms.
format	article
author	Majid shahbazi Bita Mashayekhi
author_facet	Majid shahbazi Bita Mashayekhi
author_sort	Majid shahbazi
title	Relationship between Debt Ratio, Size and Cost of Capital of Firm with Conditional and Unconditional Conservatism
title_short	Relationship between Debt Ratio, Size and Cost of Capital of Firm with Conditional and Unconditional Conservatism
title_full	Relationship between Debt Ratio, Size and Cost of Capital of Firm with Conditional and Unconditional Conservatism
title_fullStr	Relationship between Debt Ratio, Size and Cost of Capital of Firm with Conditional and Unconditional Conservatism
title_full_unstemmed	Relationship between Debt Ratio, Size and Cost of Capital of Firm with Conditional and Unconditional Conservatism
title_sort	relationship between debt ratio, size and cost of capital of firm with conditional and unconditional conservatism
publisher	Shahid Bahonar University of Kerman
publishDate	2014
url	https://doaj.org/article/2210a85b716e406a9395523aba3ac85f
work_keys_str_mv	AT majidshahbazi relationshipbetweendebtratiosizeandcostofcapitaloffirmwithconditionalandunconditionalconservatism AT bitamashayekhi relationshipbetweendebtratiosizeandcostofcapitaloffirmwithconditionalandunconditionalconservatism
_version_	1718444636032204800

Relationship between Debt Ratio, Size and Cost of Capital of Firm with Conditional and Unconditional Conservatism

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