Review the Relationship Between Macroeconomic Variables and Accounting Conservatism with Emphasis on Debt Maturity Structure

Document Type : Original Article

Authors

1 MSc., Accounting, Urmia University, Urmia, Iran

2 Faculty of Economic and Management, University of Urmia, 11km SERO Road, Urmia city, Iran.

10.22034/iaar.2021.141677

Abstract

The purpose of this study is to review the mediation role of debt maturity structure in explaining the relationship between macroeconomic variables and accounting conservatism. For this purpose, 105 companies were selected among listed companies in the Tehran Stock Exchange during the years 2012 to 2017 for statistical sample. To measure the conservatism, the model of Givoly & Hayn (2000) was used, a long-term debt to total debt ratio was used to measure the debt maturity structure. Also, macroeconomic variables in this study include GDP growth rate, inflation and money supply.To test the hypotheses, multiple regression with combined data and Sobel test has been used. The results show that there is a negative relation between the growth rate of GDP, inflation and money supply, and the debt maturity structure with accounting conservatism. The results of the Sobel test also show that the maturity structure does not play a mediator role in explaining the relationship between the GDP growth rate, inflation and the supply of money with accounting conservatism.

Keywords

Accounting and Auditing Research
Volume 13, Issue 51
September 2021
Pages 95-110

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