Investigating the effect of tax costs on accounting conservatism: Evidence from Tehran Stock Exchange

The purpose of this paper is to study the effect of the tax expenses on accounting conservatism on firms listed on Tehran Stock Exchange. In this study to measure the conservatism accruals is used to test the research hypotheses based on the information gathered from 61 firms listed on Tehran Stock...

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Bibliographic Details
Published in:	Management science letters Vol. 4; no. 1; pp. 5 - 10
Main Authors:	Asgari, Mohammad Reza, Behpouri, Mohammad Ali
Format:	Journal Article
Language:	English
Published:	Growing Science 2014
Subjects:	Accounting conservatism Tax cost Tehran Stock Exchange
Online Access:	Get full text
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Summary:	The purpose of this paper is to study the effect of the tax expenses on accounting conservatism on firms listed on Tehran Stock Exchange. In this study to measure the conservatism accruals is used to test the research hypotheses based on the information gathered from 61 firms listed on Tehran Stock Exchange over the period 2004-2009. Findings indicate that the relationship between conservatism accounting and corporate tax burden was positive and significant. In addition, firms with high book-tax conformity had higher motivation to use the conservative accounting to reduce their tax payments.
ISSN:	1923-9335 1923-9343
DOI:	10.5267/j.msl.2013.12.007