THE IMPACT OF EXTERNAL STRONG AND WEAK SUPERVISION OVER THE TRUST RELATIONSHIP MANAGEMENT AND CONDITIONAL CONSERVATISM

The managers with too much over-trust relationship overestimate the corporationʹs future investments returns and output. So it is expected that these managers delay the recognition of loss and tend to apply conservative accounting procedures. The present research explores the relationship between the over-reliance relationship management with the conditioned conservatism in terms of the external supervision in the corporations listed in the Tehran stock exchange for a period of 2009 -2014. The research involves a sample of 103 corporations which selected through systematic random sampling. The khan Watts model used to estimate the conservatism. The statistical methods of this study involve multivariate logistic regression using the SPSS software. The finding of the research indicates that there is a significant relationship between the over-trust relationship management and the conditioned conservatism in the corporations with a strong external supervision compared with those with a poor external supervision.