THE RELATIONSHIP BETWEEN “ASYMMETRIC TIMELINESS OF EARNINGS” WITH “MARKET TO BOOK VALUE” AS A CONSERVATIVE CRITERION

The main purpose of this research is to survey the relationship between asymmetric timeliness of earnings with market value to book value (MTB) as a conservative component in companies admitted to Tehran Stock Exchange. The foundation of this research is based on both the profit (loss) and the balance sheet approach. This means that asymmetric timeliness is the component of the profit (loss) approach and the ratio of the market value to the book value is the component of the balance sheet approach, which both of them are part of conservatism. In order to survey the relationship between asymmetric timeliness of earnings with Market to Book Value, the financial statements of 115 companies listed in Tehran Stock Exchange during the period 2008 to 2013 were analyzed using multivariate linear regression with Eviews 7. The result of the study indicates in the long terms (over one year), the increase in asymmetric timeliness of earnings increases the MTB ratio.