Impacts of Conditional Conservatism on Labor Investment Efficiency

Objective: Timely detection of losses versus gains (known as conditional conservatism) may make investment decisions of management efficiently by reducing the information asymmetry between management and investors and providing early signals about the profitability of the accepted projects. This stu...

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Autores principales:	Sasan Mehrani (Ph.D), Fateme Samie
Formato:	article
Lenguaje:	FA
Publicado:	Shahid Bahonar University of Kerman 2019
Materias:	conservatism labor investment efficiency information asymmetric Accounting. Bookkeeping HF5601-5689
Acceso en línea:	https://doaj.org/article/dbba5db2909243149b39eb7610745577
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spelling	oai:doaj.org-article:dbba5db2909243149b39eb76107455772021-11-04T19:54:44ZImpacts of Conditional Conservatism on Labor Investment Efficiency2008-89142476-292X10.22103/jak.2019.13075.2847https://doaj.org/article/dbba5db2909243149b39eb76107455772019-07-01T00:00:00Zhttps://jak.uk.ac.ir/article_2270_909ef969e3df8d4e6ace83304447a1c6.pdfhttps://doaj.org/toc/2008-8914https://doaj.org/toc/2476-292XObjective: Timely detection of losses versus gains (known as conditional conservatism) may make investment decisions of management efficiently by reducing the information asymmetry between management and investors and providing early signals about the profitability of the accepted projects. This study examines the effects of conservatism on the most important neglected aspect of investment decision, namely investment in manpower. Method: This is a descriptive, correlational and post-event study. The statistical population is all of the companies listed in the Tehran Stock Exchange, and the sample consists of 161 companies during 2009-2017, or totally 1449 company-years. Results: Findings showed that there is significant and negative relationship between conditional conservatism and manpower investment efficiency. This implies that the conservatism reduced inefficient investment in the labor market by reducing asymmetric information. Conclusion: Based on the findings, conservatism, as the regulatory mechanism and the early signal about the profitability of decisions, reduces damaging practices of bad earning management, and speeds up the identification of bad news earlier than good news.Sasan Mehrani (Ph.D)Fateme SamieShahid Bahonar University of Kermanarticleconservatismlabor investment efficiencyinformation asymmetricAccounting. BookkeepingHF5601-5689FAمجله دانش حسابداری, Vol 10, Iss 2, Pp 137-156 (2019)
institution	DOAJ
collection	DOAJ
language	FA
topic	conservatism labor investment efficiency information asymmetric Accounting. Bookkeeping HF5601-5689
spellingShingle	conservatism labor investment efficiency information asymmetric Accounting. Bookkeeping HF5601-5689 Sasan Mehrani (Ph.D) Fateme Samie Impacts of Conditional Conservatism on Labor Investment Efficiency
description	Objective: Timely detection of losses versus gains (known as conditional conservatism) may make investment decisions of management efficiently by reducing the information asymmetry between management and investors and providing early signals about the profitability of the accepted projects. This study examines the effects of conservatism on the most important neglected aspect of investment decision, namely investment in manpower. Method: This is a descriptive, correlational and post-event study. The statistical population is all of the companies listed in the Tehran Stock Exchange, and the sample consists of 161 companies during 2009-2017, or totally 1449 company-years. Results: Findings showed that there is significant and negative relationship between conditional conservatism and manpower investment efficiency. This implies that the conservatism reduced inefficient investment in the labor market by reducing asymmetric information. Conclusion: Based on the findings, conservatism, as the regulatory mechanism and the early signal about the profitability of decisions, reduces damaging practices of bad earning management, and speeds up the identification of bad news earlier than good news.
format	article
author	Sasan Mehrani (Ph.D) Fateme Samie
author_facet	Sasan Mehrani (Ph.D) Fateme Samie
author_sort	Sasan Mehrani (Ph.D)
title	Impacts of Conditional Conservatism on Labor Investment Efficiency
title_short	Impacts of Conditional Conservatism on Labor Investment Efficiency
title_full	Impacts of Conditional Conservatism on Labor Investment Efficiency
title_fullStr	Impacts of Conditional Conservatism on Labor Investment Efficiency
title_full_unstemmed	Impacts of Conditional Conservatism on Labor Investment Efficiency
title_sort	impacts of conditional conservatism on labor investment efficiency
publisher	Shahid Bahonar University of Kerman
publishDate	2019
url	https://doaj.org/article/dbba5db2909243149b39eb7610745577
work_keys_str_mv	AT sasanmehraniphd impactsofconditionalconservatismonlaborinvestmentefficiency AT fatemesamie impactsofconditionalconservatismonlaborinvestmentefficiency
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Impacts of Conditional Conservatism on Labor Investment Efficiency

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