Univrsity Of Tehran Press Accounting and Auditing Review 2645-8020 21 4 2014 12 22 Conditional conservatism in financial reporting Conditional conservatism in financial reporting 471 484 52904 10.22059/acctgrev.2014.52904 FA Mohammad Hossein Ghaemi Associate Prof., Faculty of Social Sciences, International Imam Khomeini University, Qazvin, Iran Aidin Kiani Ph.D. Candidate in Accounting, Faculty of Management and Economics University of Tarbiat Modares, Tehran, Iran Mostafa Taghizadeh MSc. Student in Accounting, Faculty of Social Sciences, International Imam Khomeini University, Qazvin, Iran Journal Article 2014 09 26 Conditional conservatism is stated as sentiment of accountants in order to have more verifiability for recognizing favourable news versus unfavourable news. This article has investigated the existence of conditional conservatism in Tehran stock exchange firms’ reported earnings by using Ball, Kothari and Valeri (2013) model. This model explores the existence of asymmetric earnings response by using financial variables such as size, book-to-market ratio, leverage, stock return volatility, unexpected earnings and abnormal returns. Result of implementing pool data regression on 1140 firm-year observations from 2005 to 2012 indicated lack of asymmetric earnings timeliness and according to Ball, Kothari and Valeri (2013) model. There is no conditional conservatism in financial reporting of Tehran stock market firms. Conditional conservatism is stated as sentiment of accountants in order to have more verifiability for recognizing favourable news versus unfavourable news. This article has investigated the existence of conditional conservatism in Tehran stock exchange firms’ reported earnings by using Ball, Kothari and Valeri (2013) model. This model explores the existence of asymmetric earnings response by using financial variables such as size, book-to-market ratio, leverage, stock return volatility, unexpected earnings and abnormal returns. Result of implementing pool data regression on 1140 firm-year observations from 2005 to 2012 indicated lack of asymmetric earnings timeliness and according to Ball, Kothari and Valeri (2013) model. There is no conditional conservatism in financial reporting of Tehran stock market firms. asymmetric earnings timeliness conditional conservatism conservative financial reporting Uncertainty https://acctgrev.ut.ac.ir/article_52904_218df1ac5c02c3880a720d7c375e6fa9.pdf