Study Effect of Fluctuations in Macroeconomic Indicators on Unconditional Conservatism

Investors pay great attention to macroeconomic factors in their decisions about their investments. This fact shows that they seek to reduce systematic investment risks in order to earn expected returns. The present study aims to investigate the impact of macroeconomic factors (economic growth, liquidity and inflation) on unconditional conservatism in companies listed on the Tehran Stock Exchange (TSE) during the years 2006 to 2014. For this purpose, model of Beaver and Ryan (2000) has been used to measure conservative unconditional accounting. Data analysis is done through the combined panel data using random effects model. The results of this study show that the factors of economic growth, liquidity and inflation have positive and significant impact on unconditional conservatism. Therefore, an accurate knowledge about the effects of macroeconomic factors can help investors in correct decision-making; it can also help policy makers in giving direction to economic policies. Eventually, policy makers can determine the effects of these policies on company-specific factors.

کلیدواژه ها:

Economic Growth ، Inflation ، Liquidity ، Unconditional Conservatism ، Systematic Risk