A COMPARATIVE STUDY ON CONSERVATISM USING BASU’S AND BALL & SHIVAKUMAR’S METHODS

The current study aims to investigate the relationship between conservatism of profit and the ratioof the market value to book value with Basu’s and Ball & Shivakumar’s methods in Iran. For thispurpose, 155 listed companies in Tehran Stock Exchange consider as sample of the study during2004-2010. In this context, it is used two methods (Basu and Ball & Shivakumar’s Models) tomeasure conservatism of profit. According to calculations and using regression, the obtained resultsshows that there is no significant relation between conservatism of profit and the ratio of the marketvalue to book value in both employed methods of conservatism.