Relationship between Audit Quality and Earnings Persistence In companies of Tehran exchanges

Subject Areas :

کاوه پرندین ¹ , احسان مهری ² , سید حسام وقفی ³

1 - استادیار، گروه حسابداری، دانشگاه پیام نور، تهران، ایران.
2 - کارشناس ارشد، حسابداری، تهران، ایران.
3 - استادیار، گروه حسابداری، دانشگاه پیام نور، تهران، ایران.

Received: 2018-10-10 Accepted : 2022-08-21 Published : 2022-08-22

Keywords: Audit quality, earnings persistence, Size Of institution, Antiquity Of institution, Fame Of institution, Legal Claims Of institution,

Abstract :

The aim of this study was to inestigate the effect of audit guality onearnings persistence in Pharmaceutical companies listed on the Tehran Stock ExchangeThis research is based on objective, Applied And after the event through information using the approach in the pas.To achieve its objectives, the community and the sample consists of 25 pharmaceutical company listed on the Tehran Stock Exchange were active in the pharmaceutical industry Over a period of 7 years from 1390 to 1396 were investigated. To test Hypotheses of univariate regression uses spss software is used finally a General Multivariate regression model is presented.The results indicate that audit quality can be affected by corporate earningspersistence. The relationship between audit quality and earnings persistence has a positive and significant relation is. The results of this study indicate that high-quality firms of auditors could impact on the future stability of their own earnings per sistence has a positive and significant relation is. the results of this study indicate that high-quality firms of auditors, could impact on the future stability of their own earnigs per sistance.

References:

Ahmadpour, Ahmad., Esabate Tabari, Esmat., Talebtabar Ahangar, Meysam(2015), Earnings Quality and
CEO Tenure, Journal of Emprical Research in accounting, vol 5, Issue 2, pp 1-14(In Persian).
 Amini Bashirzadeh, Amin (2014), The Effect of Audit Quality on Stability of Earnings in Financially
Helpless Companies, Master's thesis, Shahid Chamran University of Ahvaz(In Persian).
 Alavi, Seyyed Mohammad, Ghorbani, Behzad, Rostami, Vahab (2015), Investigating the Effective Factors
on the Audit Quality of Auditing in the Audit Institutions of the Member of the Iranian Society of Official
Accountants , Audit Knowledge, Vol. 15, No. 60, pp. 47-70(In Persian).57
 Asthana, S.C., Raman, K.K. and XU, H. (2015), “US-based Foreign Companies Choice of a US-based vs.
Home Country-based Big N Principal Auditor and the Effect on Audit Fees and Earnings Quality”,
Accounting Horizons, 29 (3), PP.631-666.
 Bahar Moghaddam, Mahdi., Mousavi Gouki, Ali(2016), Impact of Earnings Sustainability and Economic
Conditions on Value Relevance of Accounting Information, Vol 5, Issue 4, pp 89-112(In Persian).
 Bandarian, Amirali, Vahidi Ezi, Ibrahim Maghsoudi, Faramarz (1397), The Effect of Quality Moderation
and Continuity of Audit on the Relationship Between Ownership Structure and Earnings Management,
Financial Accounting and Audit Research, Vol. 10, No. 37, pp. 195-213(In Persian).
 Bauw HV, Marleen Willekens2012. Evidence on (the lack of) Audit – quality. Differentiation in the
Private Client Segment of the Belgian Audit Market; European Accounting Review; 13(3).p.p: 501 – 522.
 Bayat, Morteza., Zolghi, Hasan., Mirhoseini, Iraj(2015), A Survey of the Influence of Earning
Sustainability on Value Relevance of Accounting Information, Journal of accounting and euditing Review,
vol 22, Issue 1, pp 41-58(In Persian).
 Becker, C.L., M.L. DeFond, J. Jiambalvo, and K.R. Subramanyam. (1998). "The effect of audit quality on
earnings management". Contemporary Accounting Research, Vol.15 (spring): 1-24.
 Bowlin, K. , Hobson, J. L & Piercey, M. D. (2014). The Effect of Auditor Rotation, Professional
Skepticism, and Interactions with Manager on Audit Quality. Retrieved from http:/www. ssrn. com.
 Cameran,KL, Prencipe and A., & P. Trombetta. 2008. The international debate over mandatory auditor
rotation: A conceptual research framework. Journal of International Accounting, Auditing & Taxation
8.p.p: 43-66.
 DeAngelo, L., (1981). Auditor independence, “low-balling” and disclosure regulation. Journal of
Accounting and Economics -113 3 127.
 DeFond, M. Zhang, J. (2014). A review of archival auditing research. Journal of Accounting and
Economics. In Press, doi:10.1016/j.jacceco.2014.08.007.
 Davis, R. A. and D. Neu .2009*.. A note on the association between audit firm size and audit quality.
Contemporary Accounting Research (Spring).p.p: 479–488.
 Davis, Soo and Trompeter,, K.R. (2002), “Do non-audit service fees impairauditor independence?
Evidence from going concern opinions”, Journal of AccountingResearch, Vol. 40 No. 4, pp. 1247-74.
 Ebraheem Saleem Salem Alzoubi(2017), Audit quality, debt financing, and earnings management:
Evidence from Jordan, Journal of International Accounting, Auditing and Taxation ,journal homepage:
www.elsevier.com/locate/intaat.
 Farimani, Alireza, Eliasi, Alireza (2015), The Effect of Audit on the Stability of Earnings of Tehran Stock
Exchange Companies, First International Conference on Applied Economics and Business, Tehran,
Knowledge-Driven Firm(In Persian).
 Francis, J.R. & Wilson, E.R. (1988), “Auditor Changes: A Joint Test of Theories Relating to Agency Costs
and Auditor Differentiation”, The Accounting Review, 63(4), PP. 663-682.
 Hasas Yeganeh, Yahya(2016), The Impact of Corporate Governance Mechanisms on Audit Quality and
Real Earnings Management , Journal of Emprical Research in accounting, vol 5, Issue 4, pp 23-45(In
Persian).
 Hogan, C . E (1997) "Costs and Benefits of Audit Quality in the IPO Market : a self - Selection Analysis" ,
The Accounting Review . Vol . 72 , No . 1 , pp . 67-86.
 Imani, Pedram., Hajiha, Zohre., Amirhoseini, Zahra(2017), The examination of effect of earnings
persistence and profitability on disclosure level of Corporate Social Responsibility listed in Stock
Exchange in Tehran, Management accounting, vol 10, Issue 33, pp 73-88(In Persian).
 Ittonen, K. , Vahamaa E. and Vahamaa S. (2013) Female Auditors and Accruals Quality, Accounting
Horizons, Vol. 27, No. 2, PP. 205–228.
 International Auditing and Assurance Standards Board. (2011).«Audit Quality an IAASB
Perspective».NEY YORK.USA.
 Khodadadi, Vali., Ghorbani, Ramin., Hajizade, Saeed., Heydari moghaddam, Peyman(2012), Persistence
of the Cash Component of Earnings for Companies Listed in Tehran Stock Exchange, Journal of
accounting knowledge, vol 3, Issue 9, pp 79-99(In Persian). Kouaiba Amel,, Anis Jarbouib., (2014), "External Audit Quality And Ownership Structure: Interaction and
Impact on Earnings Management of Industrial And Commercial Tunisian Sectors", Journal of Economics,
Finance and Administrative Science 19, PP. 78–89.
 Leif, A. B. & Mattias, H. (2013). Earnings sustainability, economic conditions and thevalue relevance of
accounting information. Scandinavian Journal of Management. 29 (3): 314-324.
 Mehri Ehsan; Amir Mohammad Mehri and Rahmatollah Mohammadipour(2015), A Study on the
Relationship Between Qualification of Audit and Stability of Profits in Accepted Companies in Tehran
Stock Exchange, The First International Management and Accounting Conference with Valuation
Approach, Tehran, Islamic Azad University, Science and Research Branch Fars(In Persian).
 Mirzaii Ali, Ghorbani, Behzad (2015), The Effect of Auditors' Audit Quality on Stock Profit Stability of
Companies Acquired in Tehran Stock Exchange , International Management Conference on Horizon 1404,
Tehran, Islamic State Research Institute, Islamic Azad University, Tehran Branch of the East(In Persian).
 Mohd Noor,Nurul Fitri, Zuraidah Mohd Sanusia, Lee Teck Heang, Takiah Mohd Iskandar, Yusarina Mat.,
(2015), "Fraud Motives and Opportunities Factors on Earnings Manipulations7th International Conference
on Financial Criminology", Wadham College, Oxford, United Kingdom. Procedia Economics Nd Finance
28, PP. 126 – 135.
 Mojtahedzadeh, Vida and Aghaei, Parvin (2004), Effective factors on the quality of independent auditing,
from independent auditors and users, Accounting and Auditing Reviews, No. 38, pp. 53-76(In Persian).
 Namazi, Mohammad; Bayazidi, Anvar; Jabarzadeh Kangarlui, Saeed (2011), Investigating the
Relationship Between Audit Quality and Earnings Management of Listed Companies in Tehran Stock
Exchange, Accounting and Audit Research, Vol. 3, No. 9, pp. 4-21(In Persian).
 Niomaram, Hashem., Pazouki, Parisa(2015), Management bonus and earning persistence, Management
accounting, nol 8, Issue 24, pp 61-71(In Persian).
 Parvizi, Mehdi, Hamed Rezaei and Ali Alizade(2014), The Relationship between Audit Quality and
Stability of Profits in Companies Accepted in the Tehran Stock Exchange, The First National Conference
on Management and Accounting in the New World of Business, Economics and Culture, Ali Abad Katoul,
University Islamic Azad University of Aliabad Katoul(In Persian).
 Parviz, Sheikh Mohammadi, Amir, Javadi, Nematollah (2013), Investigating the relationship between the
size of the audit firm, the number of audit firms auditing clients, audit knowledge, Year 13, No. 51, pp. 1-
26(In Persian).
 Piri, Parviz, Sheikh Mohammadi, Amir, Javadi, Nematollah (2013), Investigate the relationship between
the size of the audit firm, the number of audit firms auditing clients., audit knowledge, Year 13, No. 51, pp.
1-26(In Persian).
 Sajjadi, Hosein., Ebrahimimand, Mahdi(2005), Increasing factors for independence of the independent
auditor, The university of Tehran, s scientificJournals Database, vol 12, Issue 2, pp 95-112(In Persian).
 Salehnejad, Hasan., Vaghfi, Hesam., Sadeghian, Bahram., Ahangari, Mahnaz(2015), The Relation between
Stock Price Response and Sustained Earnings Growth, Vol 4, Issue 4, pp 51-70(In Persian).
 Salehi, Allahkaram., Bozorgmehrian, Shahrokh., Amini, Amin(2017), Investigating the Effect of Audit
Quality on Sustainability of Earnings (Case study: a Comparison between Financially-Distressed
Companies and the Rest of Companies in Tehran Stock Exchange), Journal management system., Vol 5,
Issue 20, pp 47-60(In Persian).
 Safari Bidescan; Saeed; Nasrallahi; Mohammad Hussein (2016); The simultaneous presence of auditors on
the part of statutory auditor and auditor of companies increases moral hazard or increases the quality of
audit ; Accounting and Auditing Studies, Issue 19, pp. 1-24(In Persian).
 Sajjadi, Seyyed Hossein, Arabic, Mehdi (2010), The Effect of Audit Quality on Profit Management,
Official Journal Accounting Quarterly, No. 24, pp. 16-23(In Persian).
 Sepasi, Sahar., Hasanzadeh, Morteza(2016), The effect of economic dimension of corporate social
responsibility on sustainability of earnings, Iranian Journal of Value & Behavioral accounting, Vol 1, Issue
1, pp 123-138(In Persian).
 Tendello, B. & Vanstraelen, A. (2008). "Earnings Management and Audit Quality in Europe: from the
PrivateClient Segment", European Accounting Review, Vol. 17, No. 3, 447-469.
 Vaez, Seyyed Ali; Ahmadi, Mohammad Reza Dana; Rashidi Baghi, Mohsen(2014), The effect of audit
fees on audit quality in Companies Listed in Stock Exchange, Vol 1, Issue 1, pp 87-107(In Persian).
 Wattes , R . L. and J . L . Zimmerman (1986) "Positive Accounting Theory" ,
EnglewoodCliffs,N.J.:Prentice–Hall,Inc