Audit quality and Market value of corporate cash holdings

Subject Areas : Management Accounting

Mehdi Safari Gerayli ¹ , Fariba Dehghan ²

1 - استادیارگروه حسابداری، واحد بندر گز، دانشگاه آزاداسلامی، بندرگز، ایران
2 - کارشناسی ارشد حسابداری، مؤسسه آموزش عالی حکیم جرجانی، گرگان، ایران.

Received: 2016-05-28 Accepted : 2016-07-10 Published : 2017-03-21

Keywords: auditor industry specializatio, Audit quality, value cash holdings,

Abstract :

This studyaimed to investigate the effect of audit quality on market value of the firm’s cash holdings. To do so, the auditor industry specialization was used as a proxy for audit quality, we also used the model of Faulkender and Wang (2006) to measure the markets perception of the value of cash holdings. with a sample of 97 firms listed in Tehran stock exchange during the years 1389 to 1393 and using multiple regression model based on panel data techniques the research hypothesis were tested. The results indicate that the cash holdings of the firms that have been audited by Industry specialist auditors, are valued more highly for investors.

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