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Abstract

This study aimed to identify the effect of accounting conservatism on the financial ratios of shares of investment companies listed on the Palestine Stock Exchange. The research adopted a descriptive analytical approach, and data were collected from the annual reports of the target companies during the period from 2015 to 2019. Time series analysis was used to find, analyze, and measure the effect of the study variables during this period. A sample of 45 companies was used, and E-Views 9 was employed to analyze the collected data.

The results of the study indicated that there is no effect of accounting conservatism in the financial reports issued by the investment companies listed on the Palestine Stock Exchange. The study recommends the necessity for investment companies to increase the level of accounting conservatism to a reasonable level that can improve the quality of the financial reports available to users, thereby maintaining the credibility and transparency of the financial reports published by these companies.

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