The Presentation of Measurement Pattern of Conditional Accounting Conservatism Through the Testing of the Basu, and the Ball and Shivakumar Models

The first aim of this study is to evaluate the Basu and the Ball and Shivakumar models to measuring the accounting conservatism and to determine which of the existing models in Iran has more explanatory power in accounting conservatism. The second aim is to modify the two models by identifying the other effective factors on the accounting conservatism and the final goal is the presenting the measurement pattern of accounting conservatism separatelyin each model and comparing the results.

Research is a ex-post facto research and the sample consists of 156 companies during the period of eleven years from 2009 until 2019 with panel data and fixed effects model.

It was observed among these two models, The Ball and Shivakumar model has more explanatory power in measuring accounting conservatism in sample firms.By comparing the results of the models re-test by intering different independent and control variables, it was concluded that the Ball and Shivakumar model still had more explanatory power in measuring accounting conservatism.

The Ball and Shivakumar model According to factors and variables are related to Measuring accounting conservatism has been introduced as a better patternfor measuring accounting conservatism.

Contribution: 

Thisstudy reveals which of the two models of the Basu and the Ball and Shivakumar, offers more explanatory power and a better pattern for measuring accounting conservatism and the present study for this reason has informational content.