The Relationship between Competitive Environment Characteristics, the Accounting Conservatism and the Firm Market Value An Empirical Study of the Saudi Business Environment

Document Type : Original Article

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Accounting Department Faculty of Commerce Tanta University Tanta Egypt

Abstract

The objective of this study is to analyze the relation between accounting conservatism, competitive environment, and firm value. To achieve this objective, the stakeholder's theory is used in order to develop the framework and to construct research hypotheses. An empirical study to test research hypotheses are also conducted for a sample comprises (77) listed Saudi companies during the period from 2011 to 2015.
Our findings are largely consistent with the predictions of theoretical framework that incorporates insights from stakeholder's theory. The empirical evidence reported in this study can be in two groups. Firstly, there is a significant positive relationship between accounting conservatism and product market competition. Secondly, there is a significant positive relationship between accounting conservatism and firm value.

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