Impact of Industry specialization on Auditors on the relationship between Accounting Conservatism and future Stock Price Crashes of listed Companies in Tehran Stock Exchange

Authors

Shahid Chamran

Abstract

Prior research suggests that the Industry specialization on Auditors increase audit quality. Also, expected auditors through their information intermediary and corporate governance roles, decrease crash risk by decreasing agency costs, aligning interests of managers and investors, decreasing malfeasance by managers, improving operations, quality financial reporting. So, the aim of this study is to investigate the effect of Industry Specialist on auditor connection with accounting conservatism and stock price crashes of listed companies in Tehran Stock Exchange. For this purpose three hypotheses are developed and data on the 99 companies in Tehran Stock Exchange for the period of 1384 to 1393 were analyzed. This regression model using panel data with fixed effects approach, reviews and tests. The results showed that the concentration Industry specialization on auditor has significant positive impact accounting conservatism. Also the results showed Industry Specialist on auditor and Accounting conservatism has a signify cant negative impact stock price crashes. Briefly the results showed Industry Specialist on auditor has significant positive impact the relationship between Accounting conservatism and stock price crashes.

Keywords

References

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  • Receive Date: 21 November 2016
  • Revise Date: 16 January 2017
  • Accept Date: 21 November 2016

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