Relationship between different types of institutional ownership and conservatism in listed companies in Tehran stock Exchange.

This study is aimed to investigate the relation between types of institutional ownership and earnings conservatism. This study, based upon Birckley et al. (1988), categorizes institutional investors into two types as long-term horizon and short-term horizon investors. Then, institutional investors with long-term horizon are categorized into independent and dependent investors. Conservatism is measured using Basu’s (1997) model. The sample consists of 39 firms listed in Tehran Stock Exchange between 2004 and 2013 and hypotheses are tested using multiple regression. The results reveal that none of independent institutional investors with long-term horizon, dependent institutional investors with long-term horizon and institutional investors with short-term horizon has significant relation to conservatism.