The Effect of Asset Growth on Future Stock Price Crash Risk Given the Moderating Role Conservatism and Agency Problem

Document Type : Research Paper

Authors

1 Master of Accounting, Department of Accounting, Khorasgan Branch, Islamic Azad University, Isfahan, Iran

2 Professor, Shahid Chamran University, Faculty of Economics

Abstract

purpose of this study is to investigate the relationship between asset growth and the future stock price crash risk concerning the moderating effects of agency problems and accounting conservatism.
Method: To test The the research hypotheses, 102 companies were examined among the companies listed on the Tehran Stock Exchange between 2010 to 2019. To test the research hypotheses, a multivariate regression model and panel data have been used.
The results indicate that the growth of assets has a positive and significant effect on the future stock price crash risk. The findings also showed that the agency problem increases the impact of asset growth on the future stock price crash risk. In addition, accounting conservatism has no significant effect on the relationship between asset growth and the future stock price crash risk.

Keywords


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