|
Investigating the effect of audit quality on the relationship between information asymmetry and accrual-based earnings management in Tehran Stock Exchange
|
Reza Gholami *   , Mohsen Porsal |
|
|
|
Abstract: (1590 Views) |
The purpose of the present study is to investigate the impact of audit quality on the relationship between information asymmetry and earnings management. The research period is 2011-2018 and a statistical sample consisting of 127 companies listed in Tehran Stock Exchange. The results show that the size of the audit firm and the auditor's statement significantly weakens the relationship between information asymmetry and earnings management; however, the auditor's tenure has no significant effect on this relationship. In other words, audit quality weakens the relationship between information asymmetry and earnings management from both the audit firm's point of view and the auditor's opinion. Audit quality was measured through the three components of audit firm size, auditor tenure, and auditor's opinion. Also, supplementary research results show that there is a positive and significant relationship between the bid-ask spread of stocks as an indicator of information asymmetry with earnings management. The results also showed that the size of the audit firm and the auditor's statement had a negative and significant relationship with earnings management, but the audit tenure had a positive and significant relationship with earnings management.
|
Article number: 8 |
| Keywords: Bid-Ask Spread, Audit quality, information asymmetry, accrual based earnings management |
|
|
Full-Text [PDF 524 kb]
(516 Downloads)
|
Type of Study: Research |
Subject:
Auditing
Received: 2019/10/4 | Accepted: 2020/05/3 | Published: 2022/01/2
|
|
|
|
|
|
|
| Send email to the article author |
|
|
|
| Add your comments about this article |
|
|
|
