Conditional Conservatism and Economic and Financial Measures of Performance Assessment

The continuity of a firm can be determined by it،s performance in finally, because the financial performance of firm has impact on decision making in capital market. So, the study about this field can be useful in economic decisions. This research examine the relationship between conservatism in preparation financial information whit economic and financial proxies in performance assessment of 80 listed firms on Tehran Stock Exchange during fourteen years (1998- 2011). According to performance assessment measures) , the rate of return on assets and rate of return on equity as financial measures and Tobin ،Q ratio and market value added as economic measures of performance assessment is used as independent variable. The model of Khan and Watts (2010) was used to assess post-event or conditional conservatism. Regression analysis based on combined data was used to test hypotheses. Our findings show there is a negative significantly relationship between accrual conservatism and economic and financial measures of performance.