The Impact of Managerial Caution on Operating Performance and Accounting Conservatism

The aim of this research is investigate impact of the managerial caution on the operational performance and accounting conservatism. To evaluate operational performance، three criteria are used: Return on Assets (ROA)، Return on Equity (ROE)، and Operating Profit Margin (OPM). Also، in order to measure accounting conservatism، Basu''s model (1997) has been used. The data used include a sample consists of 110 listed companies in Tehran Stock Exchange (TSE) during the years 2003 to 2012. For data analysis and hypothesis testing، multivariate regression model and the model of pooled data is used. The results of estimating research models suggest that managerial caution has a positive effect on ROA and OPM، and negative effect on accounting conservatism. The research results also attest that between managerial caution and ROE، there is no statistically significant relationship.