Effects of Audit Quality on the Relationship Between Audit Committee Accounting Expertise and Forward-looking Disclosures
محورهای موضوعی : • Emerging technology in the field of Accounting and its futurePeyman Amini 1 , Mohammad Omid Akhgar Akhgar 2 , koorosh morovati 3
1 - استادیار گروه حسابداری دانشگاه کردستان، سنندج، ایران
2 - Assistant Professor, Accounting Department, University of Kurdistan, Sanandaj, Iran
3 - humanities and social sciences,university of kurdistan, sanandaj, iran
کلید واژه: Audit committee expertise, Audit quality, Forward-looking information,
چکیده مقاله :
The most important and valuable financial information that disclosed on time can be effective for the users and decision makers. The forward-looking information disclosed kind of information that can affect users' decisions. Forward-looking information can reduce the information gap between firms and investors by improving the anticipation of future earnings and investment decisions. Different factors such as audit committee and the audit quality, can affect the forward-looking information disclosures. The purpose of this study is to investigate the relationship between audit committee accounting expertise and forward-looking information disclosure with the emphasis on the role of audit quality of accepted firms in Tehran Exchange Stock. For this purpose, 114 firms selected as statistical sample by using the systematic sampling from among firms accepted in the TSE during 2011-2017. In general 794 firm-year observations were considered to be analyzed. An OLS regression and panel data method is considered for studying the relationship between variables and testing the hypotheses. The results show that there is a positive and significant relationship between audit committee accounting expertise and forward-looking information. Also, the effect of audit quality on the relationship between audit committee accounting expertise and forward-looking information is significant too.
. Abad, K. and Bravo,F. (2018). “Audit committee accounting expertise and forward looking disclosures”, Journal of Management Research Review, Vol. 31.
2. Abdulla A. R. Ali. (2014). “Corporate Governance: The Role and Effectiveness of the Audit Committee in Bahrain.” International Journal of Business and Management, Volume 9, No.3, 131-137. URL: http://dx.doi.org/10.5539/ijbm.v9n3p131
3. Ahmadi, A., and Bouri, A.J.K.E. (2017). The Effect of Audit Quality on the Extent of Voluntary Disclosure: Companies Listed in the Tunisian Stock Exchange. Journal of the Knowledge Economy, Vol 8, Issue 32, pp: 1-15.
4. Alfraih, M.M., and Almutawa, A.M. (2017). Voluntary disclosure and corporate governance: empirical evidence from Kuwait. International Journal of Law and Management, Vol. 59 Issue: 2, pp.217-236.
5. Bedard, J,Chtoru S.M. (2014), “The effect of audit committee expertse independence and activity on aggressive earning managment ”. Auditing: A Journal of practice and theory, , No. 2 Vol. 23.
6. Botosan, C. (1997). Disclosure level and the cost of equity capital, Accounting Review, Vol. 72, 323-349.
7. Chen. F., Hope, O.K., Li, Q., Wang, X. (2011). Financial reporting Quality and Investment Efficiency of Private Firms in Emerging Markets. The Accounting Review, 86 (4): 1255-1288.
8. Fama, E. & Jensen, M.(1983). «Separation of ownership and control», Journal of Law and Economics,Vol. 26, pp.301-326.
9. Lee, P.J., Taylor, S.J., and Taylor, S.L. (2006). Auditor Conservatism and Audit Quality: Evidence from IPO Earnings Forecasts’, International Journal of Auditing , 10, 182-199.
10. El-Diftar, D., Eleri Jones, M., and Ragheb, M.S. (2017). Institutional investors and voluntary disclosure and transparency: the case of Egypt. Corporate Governance: The International Journal of Business in Society, Vol. 17 Issue: 1, pp.134-151.
11. Tian, Y. & Chen, J. (2009). “Concept of Voluntary Information Disclosure and A Review of Relevant Studies”. International Journal of Economics and Finance, Vol. 1, No. 2.
12. Izi, Roya & Gharkaz, Mansuor (2018). Presentation of the quality model for the disclosure of accounting information based on the analysis of financial behavior of cognitive psychological viewers”. Knowledge of accounting and auditing management, 27(7):63-81.(In. Persian)
13. Rezazadeh, Javad & Abdi, Mostafa (2016). Audit committee characteristic and financial restatements. Financial Accounting Researches.Vol.9. No. 32.
14. Fakhari, Hossein & Rezaei, Yaser (2017). The impact of financial expertise of audit committee of the company information environment. Journal of Accounting Knowledge. Vol. 8, No. 30.
15. Karamanou, I. and Vafeas, N. (2005).The association between corporate boards, audit committee, and management earnings forecasts: an empirical analyses. Journal of Accounting Research. Vol. 43. No. 3, pp.453-486.
16. Nonahal Nahr, Aliakbar & Alinejad, Mahdi and Khezri, Parisa (2013). The impact of auditor quality on the earning management of the IPO firm. Knowledge of accounting and auditing management, 7(2):103-114.(In. Persian).
17. Rahmain, Ali and Bshirimanesh, Nazanin (2014). A review of the literature on disclosure in Iran. Journal of Research in Accounting and Auditing. Vol. …. No. 15.
18. Sadidi, Mahdi & Badiei, Hossen and Nabavi, Hamid. (2015). Effective factors on the level of exposition of future information in annual report of companies accepted in Tehran Stok Market. Knowledge of accounting and auditing management, 16(4):57-71.(In. Persian).
19. Wang, M. and Hussainey, K. (2013).Voluntary forward-looking statement driven by corporate governance and their value relevance. Journal of Accounting and Public Policy. Vol. 32, No. 3. Pp. 26-49.
20. Zalaghi, Hassan ؛ Aflatooni, Abbas and M. Barzabadi Farahani (2019), Investigation of the effect of the managing director Tenure on Auditor Tenure in Tehran Stock Exchange ,Financial Accounting and Auditing Research, Vol. 11, No. 41. Pp. 1-22.
