Conservatism has a close relationship with corporate governance system, and both of them play an important role in reducing information asymmetry and agency costs in contracts. Conservatism can limit the opportunistic behavior of company manager in financial reporting that leads to the reduction of the agency costs in institutions and companies. This research aims to study the relationship between management risk aversion and conservatism. This is a descriptive-retrospective study in terms of purpose, and the Multivariate Regression Model was used through Eviews8 software in order to test the hypotheses. The research population consisted of all the companies listed in Tehran Stock Exchange during the 9-year period of 2008 to 2017. The results of the study shows that there is a positive and significant correlation between management risk aversion and accounting conservatism of companies.
