Effect of the Audit Tenure on Earnings Quality with the Emphasis on the Information Asymmetry of Companies of TSE

Document Type : Research Paper

Authors

1 1. Assistant Prof., Accounting., PNU University

2 2. Instructor. Accounting. PNU University

3 4. MSc., Accounting, Lorestan University

4 msc accounting

Abstract

One of the indicators that improves the earnings quality is the audit tenure, therefore, the purpose of this study is to investigate the effect of the audit tenure on earnings quality, as well as to examine the moderating role of information asymmetry on the relationship between audit tenure and earnings quality in listed companies on Tehran Stock Exchange. In an effort to respond to this issue, 128 firm observation gathered from the annual financial reports of listed companies on Tehran Stock Exchange from 2010 to 2016 have been tested. The research findings showed that the audit’ tenure, has a positive and significant effect on the earnings quality. In other words, with the increase of the audit ‘tenure, the earnings quality will also increase. The results also showed that information asymmetry has a positive and significant effect on the relationship between audit’ tenure and earnings quality. In other words, with increasing of information asymmetry, the positive effect of the auditor's tenure on earnings quality is strengthened.
tenure and earnings quality.In other words,with increasing information asymmetry,the positive effect of the auditor's tenure on earnings quality is strengthened.
Keywords: Audit Tenure, Earnings Quality, Information Asymmetr

Keywords

Main Subjects

References

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Journal of Accounting and Social Interests
Volume 9, Issue 2 - Serial Number 33
September 2019
Pages 99-118

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History

  • Receive Date: 29 May 2018
  • Revise Date: 24 July 2019
  • Accept Date: 17 September 2018

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