Investigating the Impact of Audit Quality on the Relationship between Investors’ Emotional Attitudes and Earnings Response Coefficient in Companies Listed in Tehran Stock Exchange

Subject Areas :

Roya Darabi ¹ , Zohrehsadat Mirtaheri ²

1 - ASSOCIATE PROFESSOR , ESLAMIC AZAD UNIVERSITY, SOUTH TERHAN BERANCH
2 - دانشگاه آزاد اسلامی واحد تهران جنوب

Received: 2019-03-03 Accepted : 2019-06-25 Published : 2018-09-23

Keywords: Tehran Stock Exchange, Audit Quality, Behavioral Finance, Investor emotional attitude, Earnings Response Coefficient,

Abstract :

The purpose of this study was to investigate the effect of audit quality on the relationship between investors' emotional attitudes and earnings response coefficient in firms admitted to the Tehran Stock Exchange. The spatial domain of this research was the companies listed in the Tehran Stock Exchange and the time zone is the period from 2013 to 2016. In this study, audit quality was considered as a moderating variable and investors’ emotional tendencies as an independent variable and earnings response coefficient as a dependent variable. Based on the screening method, 107 companies listed in Tehran Stock Exchange were selected as the statistical sample. In the present study, the research method is descriptive-causal and since it can be useful in the process of using information, it is therefore a kind of applied research. Data analysis was also performed using Eviews software. The results showed that there is a significant relationship between investors’ emotional tendencies and earnings response coefficient. The quality of auditing affects the relationship between investors’ emotional attitudes and earnings response coefficient.

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