Approach for using Accounting Standards

Authors

1 Allameh Tabatabaee University (ATU), Tehran, Iran

2 Allameh Tabatabaee University (ATU), Tehran, Iran university

Abstract

This
article investigate how corporation using accounting standards in quantitative
method. For this purpose, we make an index for measuring degree of principle
and rule base oriented then explore behavior of this index in some variable
that root in positive accounting theory. Result show that corporation with high
political cost intend to use more rule based standards. In other hand
corporation with more debt and management compensation cost try to using more
principle oriented accounting standards. In addition, we find that with
increase in financial constraint and crisis risk, corporation intent to
shifting to using more principle based accounting standards. We used
corporation data’s that exist in Tehran stock exchange during 2000 to 2015.

Keywords

References

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History

  • Receive Date: 21 November 2016
  • Revise Date: 16 January 2017
  • Accept Date: 21 November 2016

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