The Moderating Effect of Firm Characteristics on the Relationship between Accounting Conservatism and Treasury Stocks: Evidence from Firms Listed on the Saudi Stock Exchange | ||
| مجلة البحوث المحاسبية | ||
| Article 17, Volume 9, Issue 2, December 2022, Pages 112-147 PDF (1.51 M) | ||
| DOI: 10.21608/abj.2022.266919 | ||
| Author | ||
| Abdulaziz Sulaiman Alsultan | ||
| جامعة الامام محمد بن سعود الإسلامية | ||
| Abstract | ||
| This research aims to investigate the relationship between accounting conservatism and treasury stocks. The current research examines the potential influence of firm-specific characteristics as moderating variables on this relationship. Ordinary least squares regression and multiple regressions are used to test the research hypotheses. The study sample consists of 13 non-financial firms listed on the Saudi Stock Exchange during 2018–2020, resulting in a final sample of 39 firm-year observations. The researcher concludes that accounting conservatism has a significant and negative effect on treasury stocks. In addition, the negative effect of accounting conservatism on treasury stocks is strengthened in the presence of firm size, leverage ratio and return on assets as moderating variables. These findings are robust, as the results of the sensitivity analysis support those of the fundamental analysis. To the best of the researcher’s knowledge, there is relatively limited evidence, in previous studies relating to accounting conservatism and its association with treasury stocks in the presence of firm characteristics as moderating variables. Furthermore, the findings of this research have implications for researchers and regulatory bodies that seek to enhance the quality of financial statements in emerging economies. | ||
| Keywords | ||
| Accounting conservatism; Treasury stock; Firm characteristics. | ||
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