The Relationship Between Conservatism and Investment Efficiency of Listed Companies in Tehran Stock Exchange

This research studies the relationship between Conservatism and efficiency of investment in capital assets. For verifying investment efficiency, two criterion (time series and cash flows) have been used. Statistical sample consists of 107 listed companies in Tehran Stock Exchange and the time domain is between 1999 until 2007. Statistical model used was multivariable regression model and for testing hypotheses compound data were used. The results of testing hypotheses shows that there is meaningful and negative relationship between conservatism and overinvestment. Further more there is meaningful and positive relationship between conservatism and investment efficiency. Which both Result agree with forcasted hypothese.