رابطه نوع مالكيت نهادي و حسابداري محافظه كارانه

The Relationship between Type of Institutional Ownership and Conservative Accounting

Institutional investors have the influence in corporates because of their substantial shareholdings. Also, they have incentives for monitoring on corporation procedures (include accounting procedures). Conservative accounting procedures prevent managers from opportunism behavior and extra optimism in presentation of income and cause to report reliabale incomes. This study examines the effects of institutional owners in conservative accounting procedures. But, Institutional investors arenʹt similar and have different effect on corporate accounting procedures, Therefore, this study classify Institutional investors in two categories (active Institutional ownership and inactive Institutional ownership) and examine their relationships with conservatism. Two regression models (Basuʹs model and Ball and Shivakumarʹs model) are used to emanine these relations. The results demonstrate a positive association between institutional ownership and conservatism. It shows that with increasing of institutional ownership level, increases corporatesʹ tension to use conservative procedures. Thus, these investors are active monitors that motivate managers to represent income with high quality (with usage of much conservative procedures). Also, after dividing into activate and inactivate institutional ownership, positive significant relationship is found between inactive institutional ownership and conservatism. But, reliable results arenʹt obtained in relating to active institutional ownership.