The relationship between conditional conservatism in accounting and firm’s profits margin among the companies listed on the Tehran Stock Exchange

Abstract

This study investigated the relationship between conditional conservatism in accounting and profit margins of listed companies in Tehran Stock Exchange for the years 2008 to 2011 (a period of 4 years old) pays. For this purpose, a definition of theory and data about 156 companies were collected. This study was conducted to measure conditional conservatism index of Ahmad and Dolman model (2007). Kolmogorov-Smirnov and Pearson correlation coefficient were used for the analysis. The findings of this study show that there is a statistically significant relation between the conditional conservatism in accounting and profit margins of listed companies in Tehran Stock Exchange although the intensity of this relationship is weak.