Tone management and amount of Private Information by investors in stock trading: consequences of Auditor tenure and Abnormal Audit Fees
Subject Areas :
Yahya Kamyabi
1
,
mehdi bashiri
2
1 - Faculty of Economics and Administrative Sciences
2 - h.D. Candidate of Accounting, Faculty of Economics and Administrative, University of Mazandaran, Babolsar, Iran.
Keywords: abnormal tone of disclosure, Private Information in stock trading, Auditor tenure, Abnormal Audit Fees,
Abstract :
Considering the heterogeneity between investors, the type of disclosure tone can create different signals to interpret the information. Also, the effect of voluntary disclosure in the capital market creates incentives for tone management by firms with a weaker information environment. Therefore, this research aims to investigate the moderating effect of Auditor tenure and Abnormal Audit Fees on the relationship between Tone management and the amount of Informed trading by investors in stock transactions. To achieve this goal, the research sample includes 91 companies listed in the Tehran Stock Exchange during the period from 1394 to 1401. The ordinary least squares regression method was used to test the hypotheses of the research model. The results of the hypothesis test show that the level of the abnormal tone of disclosure has a positive and significant effect on the amount of use of private Information by investors in stock transactions. In addition, the Auditor tenure does not have a moderating effect on the relationship between the tone management and Informed trading by investors, but the amount of the Abnormal audit fee has a moderating effect on the relationship between the tone management and amount of use of Informed trading by investors. The findings of the research indicate that the tone management increases the situations of using Informed trading by creating disagreements between investors and more confusion in small investors and abnormal audit fees exacerbate the relationship between tone management and the Informed trading by investors.
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