International Journal of Finance & Managerial Accounting

International Journal of Finance & Managerial Accounting

Social trust and accounting conservatism with emphasis on the role of internal control

Document Type : Original Article

Author
mohammad mahmoodi
Assistant professor, Department of accounting, Islamic Azad university, Firoozkouh branch
10.30495/ijfma.2022.65202.1779
Abstract
The present study has investigated the relationship between social trust and accounting conservatism with emphasis on the role of internal control in listed companies of Tehran stock exchange. In order to find the answer of designed questions, the data of 125 companies of Tehran stock exchange during 10 years from the beginning of 2011 to the end of 2020 were extracted and statistical test were performed on them. The method of present research is descriptive-correlation and it‌’s design is experimental and uses an Ex-post fact research design. In order to test research hypotheses, multivariate linear regression has been used which is based on panel data and a combination of cross-sectional and time series used statistical methods and econometrics to investigate the effect of the independent variable on the dependent variable.
Findings of research showed that there is a significant and negative relation between social trust and accounting conservatism, also there is a significant and negative relation between internal controls and accounting conservatism; and internal controls do not balance the relation between the social trust and accounting conservatism.
Keywords
Social trust
Accounting Conservatism
internal controls
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