Surveying the effect of auditor type on the value relevance of earnings in the accepted company in Tehran Stock Exchange

Subject Areas : Management Accounting

مهدی بهارمقدم ¹ , زینب یزدی ² , سمیه یزدی ³

1 - ندارد
2 - مسئول مکاتبات
3 - ندارد

Received: 2011-09-23 Accepted : 2011-11-06 Published : 2011-09-23

Keywords: auditor type, Value Relevance, Earnings, Tehran Stock Exchange,

Abstract :

the value relevance is ability accounting items on returns and price stock firms. Thepurpose of this study is to investigate the effect of auditor type on the value relevanceof earnings in accepted companies in Tehran Stock Exchange. For the test ofhypothesis's research this the models is defined by value relevance index. The sampleconsists of 68 companies accepted in Stock Exchange of Tehran that they are selectedduring 1381 to 1388. Statistical method used to test hypotheses in this research is"cross sectional". The findings of this study indicate that the earnings figure of firmsaudited by smaller institutions is more relevant so the first hypothesis was rejected.The report of the auditing firms audited by large institutions in comparison with smallinstitutions, their earnings numbers are more relevant, so it is suggested that mostcontrol apply on audit institutions through peer review and corporate governmentexecutive, in order to improve the quality of audit reports.