Evaluating the role of the firm's life cycle in measuring conservatism based on some conditional conservatism models

The main purpose of this study is to evaluate the role of the firm's life cycle in measuring conservatism based on some conditional conservatism models. The statistical population of the study is 2008-2009, which includes a random sample of 180 company observations that were divided into three stages of life cycle using Dickinson's (2011) model variables. Multivariate regression technique with cross-sectional data was used to test the hypotheses. Then, using the initial models of conservative measurement, the error values ​​of each model were compared with the error values ​​obtained from the life cycle-adjusted models. The results show that the coefficients of determination in Dichfang modified model are not significantly higher than the original model. However, in the wing models of Shivakumar and Khan Watts, the increase of the coefficient of determination is significant compared to the original model. Therefore, except for the Duchess Tung model, in the other two models, the inclusion of life cycle in the model increases the prediction power of the models.