Abstract:

The study aims to determine the effect of conservative accounting on the financial performance of Companies. In the study, 54 manufacturing sector companies, which are continuously traded in Borsa Istanbul in the 2010-2020 period, prepare consolidated financial statements and whose data can be accessed regularly, are examined. Within the scope of the study, return on assets, return on equity and earnings per share variables from traditional financial performance indicators, Tobin's Q ratio, stock market price and market value / book value ratio, variables from market-based financial performance indicators and market value added variable from modern financial performance indicators were used to measure financial performance. In addition, negative accruals measurement method, accruals and cash flow asymmetry measurement method and asymmetric timeliness of earnings measurement method were used to measure conservative accounting within the scope of the study. In the study, panel data analysis method was applied in order to determine whether conservative accounting has an effect on the financial performance of the companies. In the study, although there are differences within the models, it has been determined that conservative accounting has effect on the financial performance of the enterprises and it has been revealed that this effect is positive and negative.

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