Effects of Corporate Governance Mechanisms on Unconditional Conservatism of Listed Companies in Tehran Stock Exchange

This study is aimed to investigate the effect of corporate governance mechanisms on conditional conservatism of firms listed in Tehran Stock Exchange. Data are collected from 125 firms in the period from 2009 to 2013. The research considers elements of corporate governance mechanisms as independent variables, unconditional conservatism as the dependent variable, and three variable of firm size, the ratio of equity market value to book value, and financial leverage as control variable. To conduct this research, a main hypothesis and four secondary hypotheses are provided and for data analysis, Eviews statistical software version 8 is used. The research uses the correlation and, according to the target, a functional method. The results show that corporate governance mechanism has a negative effect on unconditional conservatism, institutional ownership and managerial ownership, and also it leads to decreases in unconditional conservatism.