The Impact of Accounting Conservatism on the Investment Efficiency Considering Information Asymmerty

his study examines the impact of accounting conservatism on the investment efficiency considering information asymmetry. Also was examines relation conservatism and methods of future financing in the underinvestment companies. The conservatism measures based on the Basu model. Also information asymmetry measures based on the Venkatesh and Chiang model. In order to do research 78 firm that listed in Tehran Stock Exchange in the period 2006 to 2015 have been selected. The linear multivariate regressions have been used to test the hypotheses. The results show that impact of conservatism on investment performance is higher considering information asymmetry. Information asymmetry between investor cause more conservatism action in the financial reporting. Also conservatism reduces information asymmetry. So In the underinvest companies, conservatism increase the future investment through reducing the cost of financing. Moreover, the findings suggest that there is a significant relation between conservatism with methods of debt and equity future financing in the underinvestment companies.