The effect of corporate governance on the relationship between conservatism and cash value

Corporate governance is a multidimensional issue. One of the important topics in corporate governance deals with accounting and financial management and supports the application of policies and mechanisms that ensure correct behavior and support shareholders. Another main element is the perspective of economic efficiency, in which the corporate governance system should improve the economic goals by carefully considering the shareholders' wealth. The purpose of this research is to investigate the effect of corporate governance system on the relationship between conservatism and cash value. To test the hypotheses, the information of 84 companies admitted to the Tehran Stock Exchange in the period between 1394-1400 was used. The results indicated that there is a positive and significant relationship between conservatism and the level of cash retention, and the duality of the CEO's role does not affect the relationship between conservatism and the level of cash retention, but the independence of the board of directors has a relationship between conservatism and cash retention. It strengthens the work and the level of cash maintenance.