The relationship between conditional conservatism and corporate debt ratio among the companies listed in Tehran Stock Exchange

Abstract

The current paper is to study the relationship between conditional conservatism in accounting and the debt ratio in listed companies in Tehran Stock Exchange. For this purpose, a hypothesis was designed. The sample in this study was the companies listed within a 4-year period between 2008 and 2011. Regarding the limitations, 152 companies were chosen. In this study, to measure conservatism Ahmad-Dolman Model (2007) was used. Statistical tests used in this study were conducted using SPSS software in accordance with Kolmogorov- Smironov test. The results show that there is a direct relationship between conservatism and debt ratio.