Conditional conservatism impact earning quality and stock price of companies listed in Tehran stock exchange

The purpose of this study is to examine the impact of conditional conservatism on earning quality and stock prices in companies listed in Tehran stock exchange (TSE) during the period of 2007 to 2011. The statistical population with respect of any limitations is 77 companies (385 years-firms). In this study, we used Basu(1997) model’s for conditional conservatism measurement. As well as for earning quality measurement we used the variable of cash flow from operation to net income ratio (CFO/NI). At last, the results of thesis illustrate that conditional conservatism significantly affect on stock price and earning quality.