Liability and the Relationship With Accounting Conservatism Among Companies Listed at Tehran Stock Exchange

The resent study aims at investigating the relationship between liability and
accounting conservatism, while having in mind the primary goal of management as to maximize
shareholders‘ wealth. Financial statements of 80 companies listed at Tehran Stock Exchange from
2006 to 2011 were analyzed. The companies in order to satisfy higher return should have adequate
and appropriate financial resources, which are provided by using financial instruments such as
liability and stock. Population of the study accounts for 80 companies listed at Tehran Stock
Exchange, among which 68 were chosen through elimination sampling method. Hypotheses of the
study were tested using multivariate regression model and T-test.