University of Isfahan Journal of Asset Management and Financing 2383-1189 5 3 2017 10 23 Conservatism and Stock Value Performance in Financial Crisis Conservatism and Stock Value Performance in Financial Crisis 133 150 21179 10.22108/amf.2017.21179 FA Hossein Etemadi Associate Professor, Tarbiat Modarres University faculty of Management & Economics, Accounting Department Leila Abdoli Msc Student, Tarbiat Modarres University Faculty of Management & Economics, Accounting Department Journal Article 2015 09 29 The main purpose of this research is to consider the relationship between conservatism and stock value performance (measured by stock return and abnormal returns) in financial crisis. Using information in the financial statements of 71 financial distressed companies and 71 financial non-distressed companies during the period 2004 to 2014. Criteria for the classification of financial distressed companies include: (1) three consecutive years of losses report, (2) dividend every year over the previous year more than 40% declined and (3) Article 141 of the Commercial Code. To test research hypotheses multivariate regression models is utilized. The results show that for the financial non-distressed companies, there is significant negative relation between conservatism with return stock and abnormal return stock. However, for the financial distressed companies, there is significant positive relation between conservatism with return stock and abnormal return stock. In other words, the financial distressed companies adopt more conservative policies than do the financial non-distressed companies, which shows loss of value of their stock is less than that of the financial non-distressed companies. The main purpose of this research is to consider the relationship between conservatism and stock value performance (measured by stock return and abnormal returns) in financial crisis. Using information in the financial statements of 71 financial distressed companies and 71 financial non-distressed companies during the period 2004 to 2014. Criteria for the classification of financial distressed companies include: (1) three consecutive years of losses report, (2) dividend every year over the previous year more than 40% declined and (3) Article 141 of the Commercial Code. To test research hypotheses multivariate regression models is utilized. The results show that for the financial non-distressed companies, there is significant negative relation between conservatism with return stock and abnormal return stock. However, for the financial distressed companies, there is significant positive relation between conservatism with return stock and abnormal return stock. In other words, the financial distressed companies adopt more conservative policies than do the financial non-distressed companies, which shows loss of value of their stock is less than that of the financial non-distressed companies. https://amf.ui.ac.ir/article_21179_b6d373dab6f9312feb8841be7009637d.pdf