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Investigate the market reaction to auditors' opinions on significant weaknesses in internal controlsInvestigate the market reaction to auditors' opinions on significant weaknesses in internal controls
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Mariyeh Hasani   , Mansour Garkaz * , Alireza Maetoofi , Hosein Didehkhani |
| Islamic Azad university,,, Gorgan Branch |
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Abstract: (1518 Views) |
| The main purpose of this study is to investigate the market reaction to the weakness of companies' internal control. For this purpose, first, the relationship between auditors 'comments on significant weaknesses in internal control and market reaction was examined, and then the adjustment effect of institutional shareholders, company size, and auditors' comments on this relationship was analyzed. The statistical population of the study includes all listed companies in the period between 1392 to 1398 that 148 companies were selected as a sample using the systematic elimination sampling method. The method used to collect information was library and the hypotheses were tested using regression analysis and Chow and Hausman test and with the help of Rahvard novin software. Findings showed that firstly, the market reaction to the weakness of internal control is negative and significant. Second, institutional shareholders, firm size, and auditor feedback have a direct effect on the relationship between poor internal control and corporate market response. |
Article number: 8 |
| Keywords: Weak internal control, market reaction, Auditor opinion, institutional shareholders, company size, regression analysis |
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Full-Text [PDF 646 kb]
(191 Downloads)
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Type of Study: Research |
Subject:
Auditing
Received: 2019/05/10 | Accepted: 2020/10/31 | Published: 2022/01/1
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