The Effect of Corporate Governance on Conservatism in Financial Reporting Print

This research examines the effect of corporate governance on conservatism in financial reporting. In this paper، conservatism has been measured by Khan and Watts (2009) model، and shares held by institutional investors، ownership concentration، board of directors'' independence and auditor type have been considered as corporate governance mechanisms. The statistic population of this research consists of firms listed in Tehran Stock Exchange (TSE)، and 60 firms have been selected as the research sample using the systematic omission method. The analysis of multiple regression models show that institutional investors، ownership concentration and board of directors'' independence have no effect on accounting conservatism. However، accounting conservatism is lower in years with the audit organization as auditor. Furthermore، in this research، some control variables'' effects have been considered.