Conditional accounting conservatism and financial flexibility: the Corona pandemic in the formation of legal claims

Abstract

Purpose

The purpose of this research is to investigate the importance and status of conditional accounting conservatism indicators and financial flexibility for the management of legal claims of the company during the outbreak of Corona.

Design/methodology/approach

The research method was implemented using statistical analysis in the SPSS environment. The participants of this research can be experts and specialists working in companies admitted to the stock exchange and expert professors in accounting fields; auditing; economy; financial engineering and financial management, categorized. The data related to the localization tool of research variables were collected by snowball sampling method in the summer of 2022.

Findings

One of the main results of the research is that based on the opinions and professional experience of experts and professionals working in companies admitted to the stock exchange and academic experts, within a range of seven, “The number of legal claims of the company with electronic businesses” under the title of the main indicator in the legal claims of the company in the outbreak of Corona from the importance dimension; “Exchange rate fluctuations in financial resilience” under the title of the main indicator in financial resilience in the Corona outbreak from the functional dimension; “The number of legal claims of the company with government institutions” under the title of the main indicator in the company’s legal claims in the Corona outbreak from the functional dimension; “The company’s conservatism score” under the title of the main indicator in the conditional conservatism of accounting in the Corona outbreak from the functional dimension; “oil price fluctuations in financial resilience” under the title of the main indicator in financial resilience in the Corona outbreak from the importance dimension; and “type of industry based on total assets” under the title of the main indicator in the conditional conservatism of accounting in the Corona outbreak was calculated from the importance dimension.

Originality/value

Although the previous literature has studied the direct correlation between accounting conservatism and financial flexibility, this work focuses on examining the direct association between accounting conservatism and financial flexibility in the post-Corona era and is carried out to resolve legal claims.

Citation

Mahmoodi, A.A., Abdoli, M., Shahri, M. and Dehdar, F. (2025), "Conditional accounting conservatism and financial flexibility: the Corona pandemic in the formation of legal claims", International Journal of Law and Management, Vol. 67 No. 2, pp. 299-324. https://doi.org/10.1108/IJLMA-09-2023-0212