Relation between of conservatism and price to book ratio in Tehran Stock Exchange

May of research resulted that conservatism has influenced financial variables. Because important of price to book ratio in investment decision, this study investigates the relation between income conservatism and price to book ratio. Consistent with Basu (1997), earnings are generally conservative in the sense that the sensitivity of earnings to returns is greater than for "bad news firms" (those experiencing negative returns) than for "good news firms" (those experiencing positive returns). This study, test for differences in operating income conservatism across price to book ratio portfolios.Base on results of other search we expect negative link between accruals component and cash flow component of operating income conservatism with price to book ratio in Tehran Stock Exchange. But results of the search show that there is no relation between operating income conservatism (both accruals component and cash flow component) and price to book ratio in Tehran Stock Exchange.