Accounting Conservatism and the Company's Performance: the Moderating Effect of the Ownership Structure
Affes H and Sardouk H*
Faculty of Economics and Management of Sfax, University of Sfax, Tunisia
- Corresponding Author:
- Hadia Sardouk
PhD researcher in accounting sciences
Faculty of Economics and Management of Sfax
University of Sfax, Tunisia
E-mail: [email protected]
Received April 21, 2016; Accepted May 05, 2016; Published May 12, 2016
Citation: Affes H, Sardouk H (2016) Accounting Conservatism and the Company's Performance: the Moderating Effect of the Ownership Structure. J Bus Fin Aff 5:188. doi:10.4172/2167-0234.1000188
Copyright: © 2016 Affes H, et al. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
The purpose of this article is to highlight the moderating effect of a central mechanism of governance, namely, the ownership structure in the relationship between accounting conservatism and the enterprise’s performance using a sample of French companies listed on the Paris stock exchange. Previous studies have investigated the impact of corporate governance on the level of accounting conservatism. Our objective is to study the effect on the relationship between the level of accounting conservatism and performance of a central governance mechanism, namely, the ownership structure. We examine the concentration effect of institutional, wage and property of such a mechanism on the relationship between accounting conservatism and the accounting company’s performance which is measured by the return on equity in 60 French listed companies belonging to the SBF 120 index in all the period 2007-2012 of enterprises. Else more most of the results support the moderating effect of such a mechanism that has been ignored or overlooked by previous work.