Purpose

This study aims to assess the relationship between managerial entrenchment and accounting conservatism in Iran.

Design/methodology/approach

To test hypotheses, all listed companies on the Tehran Stock Exchange during 2013–2018 (six years) that qualified were selected. Given the defined limitations of the study, a total of 120 firms with 720 year-observations was selected. After collecting data and figures, they were analyzed using EViews software. Having presented the inferential model tests, the panel data with fixed effects model is chosen.

Findings

The study results indicate a positive and significant relationship between managerial entrenchment and unconditional conservatism presented in the income statement. Moreover, the authors find a meaningful relationship between managerial entrenchment and unconditional conservatism about the balance sheet.

Practical implications

Managers will be more aware of the positive consequences of employment optimal corporate governance such as conservative accounting. Such corporate governance is likely to serve their interest in the long run by providing positive signals to the equity owners and board of directors.

Originality/value

By assessing conservatism’s literature in Iran, we observe many studies on this concept. Still, no investigation is carried out on the relationship between conservatism in accounting and managerial entrenchment. The present study is innovative because it evaluates the relationship between managerial entrenchment and two types of conservatism, namely, balance sheet and income statement conservatism, which have never been investigated by prior studies, notably in emerging markets.

中文翻译：

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管理坚守与会计稳健性的关系

目的

本研究旨在评估伊朗的管理壁垒与会计保守主义之间的关系。

设计/方法/方法

为了检验假设，选择了 2013-2018 年（6 年）所有符合条件的德黑兰证券交易所上市公司。考虑到研究的局限性，总共选择了 120 家具有 720 年观察的公司。收集数据和数字后，使用 EViews 软件对其进行分析。在介绍了推理模型检验之后，选择了具有固定效应模型的面板数据。

发现

研究结果表明，损益表中的管理层坚守与无条件保守主义之间存在显着的正相关关系。此外，作者发现管理层的坚守与资产负债表的无条件保守主义之间存在有意义的关系。

实际影响

管理人员将更加意识到雇佣最优公司治理（例如保守会计）的积极后果。从长远来看，这种公司治理可能会通过向股权所有者和董事会提供积极信号来满足他们的利益。

原创性/价值

通过评估伊朗保守主义的文献，我们观察到许多关于这个概念的研究。然而，对于会计保守主义与管理固守的关系，还没有进行任何调查。本研究具有创新性，因为它评估了管理坚守与两种类型的保守主义之间的关系，即资产负债表和损益表保守主义，之前的研究从未对这两种保守主义进行过调查，尤其是在新兴市场。