• Home
  • The Impact of the Auditor Tenure on Earnings Quality under of Information Asymmetry Between auditor and manager

Share To

Article Url


Manuscript ID : JDEM-2001-2377 (R1) Visit : 289 Page: 61 - 71

Article Type: Original Research

The Impact of the Auditor Tenure on Earnings Quality under of Information Asymmetry Between auditor and manager

Subject Areas : HSE Management

Mojtaba Motalebian 1 , Mehdi Arabsalehi 2 , Hadi Amiri 3

1 - PhD Student, Department of Accounting, Isfahan Branch (Khorasgan), Islamic Azad University, Isfahan, Iran
2 - Associate Professor, Department of Accounting, University of Isfahan, Isfahan, Iran
3 - Assistant Professor, Department of Economics, University of Isfahan, Isfahan, Iran

Received: 2020-02-06 Accepted : 2021-09-19 Published : 2021-08-23

Keywords: Auditor Tenure, Audit Quality, earnings quality, Accruals Quality, Auditor-Manager Information Asymmetry,

Abstract :

Previous research on the impact of the auditor's tenure on earnings quality has had conflicting results. Based on the independence hypothesis, some researchers believe that increasing auditor tenure reduces the earnings quality. According to the specialty hypothesis, some researchers believe that increasing the tenure of an auditor leads to an increase in the earnings quality. In this study, to evaluate these two competing perspectives, the information asymmetry Between auditor and manager was used as a moderating variable. Therefore, the purpose of the present study is to investigate the impact of auditor's tenure on earnings quality under of information asymmetry between auditor and manager. For this purpose, the financial information of 103 companies listed in Tehran Stock Exchange between 2009 and 2018 was used. Data analysis was done by panel regression model. The results indicate that the auditor's tenure has a positive effect on earnings quality. The results also showed that the auditor tenure in firms with a higher level of information asymmetry between auditor and manager results in greater earnings quality.

References:


  1. اعتمادی، حسین؛ محمدی، امیر و مهدی ناظمی اردکانی(1389)، بررسی رابطه بین تخصص در صنعت و کیفیت سود در شرکت های پذیرفته شده بورس اوراق بهادار تهران. پژوهش های حسابداری مالی، سال اول، شمارۀ 1و 2.
    2.
  2. بولو، قاسم(1385)، هزینه حقوق صاحبان سهام و وی‍ژگیهای سود؛ پایان نامه دکتری حسابداری؛ دانشکده حسابداری و مدیریت دانشگاه علامه طباطبایی.
    3.
  3. تحریری، آرش، رسولی، مریم و الهام ولی. (1398). بررسی رابطه بین کیفیت حسابرسی و اقلام تعهدی اختیاری در شرکت های با ارزش بالا، تحقیقات حسابداری و حسابرسی، 42(11): 158-143.
    4.
  4. حساس یگانه، یحیی، محمودی، مهدی و رسول ذبیحی. (1396). بررسی تاثیر دوره تصدی حسابرس بر کیفیت گزارشگری مالی شرکت های پذیرفته شده در بورس اوراق بهادار تهران، فصلنامه بورس اوراق بهادار تهران، شماره 37، صص 66-41.
    5.
  5. خداداده شاملو، ناصر؛ یونس بادآور نهندی(1396)، تأثیر تخصص حسابرس در صنعت و دورۀ تصدی حسابرس بر قابلیت مقایسۀ صورت های مالی با تأکید بر چرخۀ عمر شرکت، پژهشهای حسابداری مالی 9(2): 127-105.
    6.
  6. صادقی، محسن؛ محسن دستگیر و هادی امیری. (1397). بررسی تمرکز سرمایه گذاران بر پایداری اقلام تعهدی و جریان های نقدی در سال های گزارش زیان، فصلنامه حسابداری مالی 37(1): 23-1.
    7.
  7. علوی طبری، سیدحسین و بذرافشان، آمنه(1392). کیفیت سود: شواهدی از نقش دوره تصدی حسابرس و تخصص در صنعت، دانش حسابداری و حسابرسی مدیریت 2(7): 101- 91 .
    8.
  8. نوری فرد، یداله و فاطمه زهرا شربتی. (1394). تاثیر دوره تصدی حسابرس بر کیفیت افشای اطلاعات در شرکت های پذیرفته شده در بورس اوراق بهادار تهران. پژوهشنامه اقتصاد کسب و کار، شماره 12صص 58-49.
    9.
  9. نصیرزاده، فرزانه؛ محمدرضا عباس زاده و محمد حسین ذوالفقار آرانی (1396). بررسی تأثیر خوشبینی مدیران و عدم تقارن اطلاعاتی ناشی از آن بر روی ریسک سقوط قیمت سهام. فصلنامه حسابداری مالی 9(4): 70-35.
    10.
  10. Abad, D,. Ballesta, J.P., yague, J. (2016), Audit Opinions and Information Asymmetry. Accounting and Finance:1-31.
    11.
  11. Alissa, W., Capkun, V., Jeanjean, T., Suca, N., (2014). An Empirical Investigation of the Impact of Audit and Auditor Characteristics on Auditor Performance. Accounting, Organ. Soc. 39, 495-510.
    12.
  12. Arrunada, B., Paz-Ares, C. (2004), Mandatory Rotation Of Company Auditors: A critical examination. International Review of Law and Economics pp. 55-69.
    13.
  13. Agoes, S., Rahmina L, Y, (2014). Influence of auditor independence, audit tenure, and audit fee on audit quality of members of capital market accountant forum in Indonesia, International Conference on Accounting Studies, 18-19 August 2014, Kuala Lumpur, Malaysia
    14.
  14. Barth, M.E., Landsman, W. R., Lang, M., and C. Williams. (2012). Are IFRS-Based and US GAAP-Based Accounting Amounts Comparable?. Journal of Accounting and Economics 54(1): 68-93.
    15.
  15. Bhattacharya, N., Desai, H., Venkataraman, K., (2013). Does earnings quality affect information asymmetry? Evidence from trading costs, Contemp. Account. Res. 30, 482-516.
    16.
  16. Cameran, M., Francis, J.R., Marra, A., Pettinicchio, A. (2015), Are There Adverse Consequences of Mandatory Auditor Rotation? Evidence from the Italian experience, Auditing: A Journal of Practice and Theory 34(2): 1-24.
    17.
  17. Chi, W., Huang, H., Liao, Y., Xie, H., (2009), Mandatory Audit Partner Rotation, Audit Quality, and Market Perception: Evidence from Taiwan. Contemp. Res. 26, 359-391.
    18.
  18. Chen, C., Lin, C., Lin, Y.(2008). Audit Partner Tenure, Audit Firm Tenure, and Discretionary Accruals: Does Long Auditor Tenure Impair Earnings Quality?, Contemporary Accounting Research 25(2): 215–245.
    19.
  19. DeFond, M., Zhang, J. (2014), A Review of Archival Auditing Research. Journal of Accounting and Economics 58(2): 275-326
    20.
  20. Davis, RL. Soo, B.S., Trompeter, G. M., (2009), Auditor Tenure and Ability to Meet or beat Earning Forecasts, Contemporary Accounting Research, No: 26, pp: 517- 548.
    21.
  21. De Angelo, L.E., (1981), Auditor Size and Audit Quality, Journal of Accounting and Economics 3(3): 183-199.
    22.
  22. Dechow, P.M., Dichev, I.D., (2002), The Quality of Accruals and Earnings: The role of Accrual Estimation Errors. Account. Rev. 77, 35-59.
    23.
  23. Farinha, J., Mateus, C., Soares, N., (2018), Cash Holdings and Earnings Quality: Evidence from the Main and Alternative UK Markets, International Review of Financial Analysis, Volume 56, PP 238-252.
    24.
  24. Garcia Blandon, J., Josep, M., Bosch, A., Ravenda, D., (2019). Audit Firm Tenure and Audit Quality: A cross European study, pp35-64, https://doi.org/10.1111/jifm.12098
    25.
  25. Gul, F.A., Fung S.Y., Jaggi, B.L. (2009), Earning Quality: Some Evidence on the Role of Auditor Tenure and Auditors, industry expertise. Journal of Accounting and Economics, No 47, pp: 265- 280.
    26.
  26. Hohenfels, D., (2016), Auditor Tenure and Perceived Earnings Quality. Int. J. Audit. 20, 224-238.
    27.
  27. Houqe, M. N., Ahmed, K., Zijl, T.V., (2017), Audit Quality, Earnings Management, and Cost of Equity Capital: Evidence from India, International Journal of Auditing  Volume 21, Issue 2 Pages 177–189
    28.
  28. Kyriakou, M., Augustinos,  , Dimitras, I. (2018), Impact of Auditor Tenure on Audit Quality: European Evidence. Investment Management and Financial Innovations, 15 (1), 374-386. doi:10.21511/imfi.15(1).2018.31
    29.
  29. Leung, S.C., Srinidhi, B., Xie, L. (2017), Auditor Tenure, Information Asymmetry and Earnings Quality. https://ssrn.com/abstract=2941949.
    30.
  30. Lim, C.Y., Tan, H.T., (2008), Non-audit Service Fees and Audit Quality: The Impact of Auditor Specialization. J. Account. Res. 46, 199-246. Lim, C.Y., Tan, H.T., (2008) Non-audit Service Fees and Audit Quality: The Impact of Auditor Specialization. J. Account. Res. 46, 199-246.
    31.
  31. Liu, W., (2012).,Audit Tenure, and Informativeness of Earnings: New Zealand Evidence, A dissertation for the degree of Master of Business in Auckland University of Technology
    32.
  32. Peterson, K., Schmardebeck, R., Wilks, T.J. (2015).The Earning Quality and Information Processing Effects of Accounting Consistency .The Accounting Review 90(6):2483-2514.
    33.
  33. Patterson, R., Smith, J.R., Tiras, S.L. (2019). The Interrelation between Audit Quality and Managerial Reporting Choices and Its Effects on Financial Reporting Quality, Contemporary Accounting Research, https://doi.org/10.1111/1911-3846.12487.
    34.
  34. Patterson, E. R., Smith, J.R., Tiras, S.L. (2019), The Effects of Auditor Tenure on Fraud and Its Detection. The Accounting Review In-Press. https://doi.org/10.2308/accr-52370
    35.
  35. Singer, Z., Zhang, J., (2018), Auditor Tenure and the Timeliness of Misstatement Discovery. The Accounting Review: March 2018, Vol. 93, No. 2, pp. 315-338.
    36.
  36. Swanson, Z., Srinidhi, B.N., Seetharaman, A., (2003), the Capital Structure Paradigm: Evolution of Debt/Equity Choices. Greenwood Publishing Group.
    37.
  37. Varici, I. (2013), the Relationship between Information Asymmetry and the Quality of Audit: An Empirical Study in Istanbul Stock Exchange, International Business Research. 6 (10): 132-140.
    38.
  38. Williams, L.T., Wilder, W.M., (2016), Audit Firm Perspective on Audit Firm Rotation and Enhancing Independence: Evidence from PCAOB Comment Letters. Curry, Issues Audit
    39.
_||_

Related articles

The rights to this website are owned by the Raimag Press Management System.
Copyright © 2021-2024

Home| Login| About Us| Contact Us|
[فارسی] [العربية] [fa] [ar]