The clarification of Relation between Accounting conservatism and bankruptcy of accepted companies in Tehran stock exchange (TSE) using models of bankruptcy prediction

The increasing competition of firms has limited the profit gains and increased the likelihood of a corporate financial crisis. One of the main concerns of investors is the recognition of profitable companies from financially corrupt companies through their financial characteristics. On the other hand, accounting conservatism has a long history in accounting and financial management. For a long time conservatism has penetrated accounting practices and this influence has been important. Therefore, it is necessary and necessary to study the relationship between accounting conservatism and corporate financial crisis. To test the hypotheses of the research, two different statistical methods such as logistic regression and mean equality test have been used. Sample size includes 48 companies with financial crisis and 57 profitable companies in Tehran Stock Exchange. The results show that accounting conservatism index has a meaningful and direct relationship with financial crisis of companies. There is also an inverse relationship between the corporate financial crisis with the size of the company and the profitability index as well as the direct relationship with the leverage ratio. The results show that sales growth has no effect on the financial crisis of companies and has the greatest impact on the probability of a financial crisis in companies, by the index of profitability or inefficiency of management in performance improvement.