The Impact of the Auditor’s Tenure on the Quality of Information Disclosure in the Companies listed in Tehran Stock Exchange (TSE)
Subject Areas :
Yadollah Noorifard
1
(عضوهیات علمی دانشگاه آزاداسلامی واحد تهران جنوب)
FatemehZahra Sharbati
2
(کارشناس ارشد حسابداری واحد علوم تحقیقات)
Keywords: Reliability, Auditor Tenure, Timeliness, Auditing Quality, Disclosure Quality,
Abstract :
The purpose of this study is to investigate the relationship between the auditor’s tenure and the quality of information disclosure. The sample of the research consists of 94 companies listed in the Tehran Stock Exchange during the years between 2004 to 2012. The results of theoretical research suggested that auditor’s tenure may influence on the quality of information disclosure through an effect on the auditing quality and independence. To measure the variable of disclosure quality, the advantages of each company are utilized. These advantages have been extracted by Tehran Stock Exchange Organization through notifications on the quality of information disclosure and proper informing. The aim of this study was to investigate the relationship between auditor tenure and disclosure quality with the use of multiple linear regression analysis and the separation of auditor tenure duration period into two short-term and long-term periods. The results indicated the existence of a significant and positive relationship between auditor’s tenure and disclosure quality. In other words, an increase in auditor’s tenure duration period will substantially lead to an increase in the disclosure quality.
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