Association between Ownership Structure and Accounting Conservatism

The current study aims to investigate the association between ownership structure (type of ownership and rank of ownership concentration) and accounting conservatism based on operating and book approaches. Four hypotheses were assumed to achieve this aim. First and second hypotheses assess the relation between type of ownership and rank of ownership concentration and accounting conservatism on the basis of operating and book approaches. Third and fourth hypotheses appraise the relation between type of ownership and rank of ownership concentration and accounting conservatism based on book approach. According to review of literature and theoretical background, regression model and descriptive and inferential statistics were applied to analyze the obtained data. Applying systematic deletion, a target population of 100 listed companies on Tehran Stock Exchange was utilized in this study during a period of two years from 2008 to 2009. The achieved results of analyzing data confirm first hypothesis and reject second, third and fourth hypotheses. Findings of the study indicate that there is a significant linear relationship between types of ownership and accounting conservatism based on operating approach; there is no significant relationship between type of ownership and rank of ownership concentration and accounting conservatism based on book approach.

Type of ownership, rank of ownership concentration, operating conservatism, book conservatism