Conservatism and information content of financial statements items



In this research we examined the relationship between conservatism and information content of accounting earnings in 131 firms, listed on Tehran Stock Exchange (TSE) during years 2002 to2010. Conservatism is measured by using three models including Basu (1997), Ball and Shiva Kumar (2005) and Ball, Kothari and Robin (2000) models. Information content is measured by Easton and Harris (1991) model.
Research Findings show that firms accounting earnings are conservative and it decreases the information content of accounting earnings. Also conservatism has not leaded to more returns to investors.