Investigating the Effect of Audit Quality on Over-investment Using Measures of Auditor Specialty and Audit Tenure for Listed Companies in Tehran Stock Exchange
The main objective of this study was to investigate the effects of audit quality on over-investment in listed companies in Tehran Stock Exchange. In order to measure audit quality, two variables, namely auditor tenure and auditor expertise were used. The study population comprised three selected industries: cement, basic metals and automotive parts; after determining the sample through selection method, the data was collected for the period between 2009 and 2012. In order to analyze and test the hypotheses, linear regression and logit regression was performed in Eviews (version 7.1) and SPSS (version 20). Using logit regression, results showed that there is a significant inverse relationship between auditor specialization and over-investment. Studying the audit quality in tenures, it was also found that there is no significant relationship between over-investment in long term period and medium tenure in any of the logit or linear regression models; however, using logit regression, there was found a positive significant relationship in short term period.
Volume (Year): 3 (2013)
Issue (Month): 4 (October)
|Contact details of provider:|| Web page: http://hrmars.com/index.php/pages/detail/Accounting-Finance-Journal|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Brenda Van Tendeloo & Ann Vanstraelen, 2008.
"Earnings Management and Audit Quality in Europe: Evidence from the Private Client Segment Market,"
European Accounting Review,
Taylor & Francis Journals, vol. 17(3), pages 447-469.
- VAN TENDELOO, Brenda & VANSTRAELEN, Ann, 2005. "Earnings management and audit quality in Europe: Evidence from the private client segment market," Working Papers 2005012, University of Antwerp, Faculty of Applied Economics.
- Tim Adam & Vidhan K. Goyal, 2008. "The Investment Opportunity Set And Its Proxy Variables," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 31(1), pages 41-63.
- Biddle, Gary C. & Hilary, Gilles & Verdi, Rodrigo S., 2009. "How does financial reporting quality relate to investment efficiency?," Journal of Accounting and Economics, Elsevier, vol. 48(2-3), pages 112-131, December.
- Gilles Hilary & Gary C. Biddle & Rodrigo S. Verdi, 2009. "How Does Financial Reporting Quality Relate to Investment Efficiency?," Post-Print hal-00481731, HAL.
- Sattar A. Mansi & William F. Maxwell & Darius P. Miller, 2004. "Does Auditor Quality and Tenure Matter to Investors? Evidence from the Bond Market," Journal of Accounting Research, Wiley Blackwell, vol. 42(4), pages 755-793, 09.
- Artur Morgado & Julio Pindado, 2003. "The Underinvestment and Overinvestment Hypotheses: an Analysis Using Panel Data," European Financial Management, European Financial Management Association, vol. 9(2), pages 163-177.
- DeAngelo, Linda Elizabeth, 1981. "Auditor size and audit quality," Journal of Accounting and Economics, Elsevier, vol. 3(3), pages 183-199, December.
- Li, Dan, 2010. "Does auditor tenure affect accounting conservatism? Further evidence," Journal of Accounting and Public Policy, Elsevier, vol. 29(3), pages 226-241, June. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:hur:ijaraf:v:3:y:2013:i:4:p:229-244. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Hassan Danial Aslam)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.