چکیده:
Due to contractual demands, litigation costs and legal preferences in banks, the role of conditional conservatism is important in order to increase banking transparency. Also, in the conditions of information asymmetry and financial distress, uncertainty about the quality of loans is reduced, bank managers try to reduce agency costs by increasing the quality of information through conservative reporting and increasing the informing about banks real value. Based on this, the aim of the research is to investigate the effect of information asymmetry and financial distress on relationship between accounting conservatism and loan quality portfolio in Iran's banking system. For this purpose, the data of 15 banks accepted in the Iranian capital market between 2012 and 2020 have been used. The analysis of the results using multiple regression showed that conditional conservatism has increased the loan quality portfolio (increasing the quality of bank assets and reducing the ratio of non-current claims), and informational asymmetry and financial distress with a positive effect have modified and intensified the relationship between conditional conservatism and loan quality portfolio.
خلاصه ماشینی:
The Impact of Information Asymmetry and Financial Distress on the Relationship between Conservatism and the Loan Quality Portfolio in the Iranian Banking System 1 Rahim Bonabi Ghadim Abstract Due to contractual claims, litigation costs, and legal preferences in banks, the role of conditional conservatism in increasing banking transparency is significant.
Accordingly, the objective of this research is to investigate the impact of information asymmetry and financial distress on the relationship between accounting conservatism and the loan quality portfolio in the Iranian banking system.
Analysis of the results using multiple regression showed that conditional conservatism has caused the loan quality portfolio (increasing the quality of banking assets and decreasing the non-performing loan ratio) to increase, and information asymmetry and financial distress, with a positive influence, have caused the relationship between conditional conservatism and the loan quality portfolio to be moderated and intensified.
com Introduction While previous evidence indicates that the timely recognition of expected loan losses acts as a type of monitoring mechanism (Beatty & Liao1, 2011 and Bushman & Williams2, 2012 and 2015), only a few studies have examined the consequences of asymmetric loss recognition as conditional conservatism for bank risk-taking or monitoring effort.
Meanwhile, in other studies conducted by Lestari Dewi & Suryanawa4 (2014), Riyandi & Ariska (2019), Sumiari & Wirama5 (2016), and Sholikhah & Suryani (2020), it has been stated that financial distress has a significant negative effect on accounting conservatism.
(
, 
, 
)
