Test Conservatism in Accounting Policies and Earnings Response Coefficient Based on Accounting Variables

The purpose of this study is to investigate the relationship between conservatism in accounting practices, earnings response coefficient companies accepted in Tehran Stock Exchange in the period 2009-2013. For this purpose, the systematic elimination of 142 companies have been selected as examples. This study is a descriptive - correlation and data used in this research is panel data. To test the hypotheses, a multiple regression model to select the most appropriate model of panel data was used from Chow and Hausman test. The results show that the conservatism in accounting policies and earnings response coefficient is negative and significant relationship.