The Effect of Accounting Conservatism on Macroeconomic Indicator
Quarterly Journal of Securities Exchange

Quarterly Journal of Securities Exchange

The Effect of Accounting Conservatism on Macroeconomic Indicator

Document Type : Original Article

Authors
Mohsen Arabzadeh 1
naser izadinia 2
saeed samadi 3
1 Ph.D. Student in Accounting, Faculty of Administrative and Economics, University of Isfahan, Iran
2 Associate Prof/ Faculty of Administrative and Economics/ University of Isfahan
3 Associate Prof, Faculty of Administrative and Economics, University of Isfahan, Iran
10.22034/jse.2021.11207
Abstract
The Effect of Accounting Conservatism on Macroeconomic Indicators
Abstract:
Objective: The main objective of this study is to explain the effect of conditional conservatism on cumulative accounting and gross domestic product (GDP). The effect of the conditional conservative monetary value on interest rates with consideration of conditional conservatism has also been studied on corporate profits and gross domestic product. In other words, is the reaction of corporate profits and gross domestic product (GDP) to bad (negative) news better than responding to good news (positive)? And does conditional conservatism affect interest rate by changing gross domestic product (GDP)?
Methods: In this Research, to test hypotheses have been developed, a time series multi-variable regression model has been used. The Campbell model is used by four monthly variables in VAR to measure news. Also, seasonal data from companies listed in the Tehran stock exchange selected in 1380-1396.
Conclusions: According to the research findings, the company's corporate profits and gross domestic product respond to bad (negative) news more than respond to good news (positive). In other words, macroeconomic indicators and corporate profits are conditionally conservative. Also, the rial value (monetary) of conditional conservatism affects interest rate by affecting the corporate profits and gross domestic product (GDP).
Keywords
Accounting Conservatism؛ Macroeconomic Indicators؛ Gross Domestic Product؛ Net Investment
Aggregate Accounting Earning
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Quarterly Journal of Securities Exchange
Volume 13, Issue 52
Winter 2021
Pages 220-244