An Empirical Association between Audit Quality and Risk Taking toward Value Creation in Iran
In the financial literature, risk-taking and investment-related decisions are among the most important decisions for companies that make optimal decisions in these two areas, optimally allocating resources and directing financial resources to economic investments and profitable projects for value cr...
| Main Authors: | , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Mashhad: Behzad Hassannezhad Kashani
2019-12-01
|
| Series: | International Journal of Management, Accounting and Economics |
| Subjects: | |
| Online Access: | https://www.ijmae.com/article_114658_d6c486134847a38c66428704e1be4414.pdf |
| _version_ | 1797690320814604288 |
|---|---|
| author | Saeed Pakdelan Alireza Azarberahman Jalal Azarberahman Ebrahim Timori |
| author_facet | Saeed Pakdelan Alireza Azarberahman Jalal Azarberahman Ebrahim Timori |
| author_sort | Saeed Pakdelan |
| collection | DOAJ |
| description | In the financial literature, risk-taking and investment-related decisions are among the most important decisions for companies that make optimal decisions in these two areas, optimally allocating resources and directing financial resources to economic investments and profitable projects for value creation. The purpose of the research is to investigate the relationship between audit quality and risk taking on value creation in firms listed in Tehran Stock Exchange (TSE). The research used five components of auditor's specialist, tenure, audit size, ownership concentration, and board of director’s independence to evaluate audit quality. The statistical population of the study includes the companies listed in TSE. Using a screening method, 610 firm-year data were selected for a 5-year period (2013-2017). This research is based on panel data and multivariate regression method. The research findings show that among these five components as well as the risk factor, only the variables of auditor tenure and ownership concentration have a significant effect on corporate value creation. The originality of the results of the research contributes to the auditing and capital market in TSE. |
| first_indexed | 2024-03-12T01:58:57Z |
| format | Article |
| id | doaj.art-1c00bf9c14bd425baaaf2798b96993ba |
| institution | Directory Open Access Journal |
| issn | 2383-2126 |
| language | English |
| last_indexed | 2024-03-12T01:58:57Z |
| publishDate | 2019-12-01 |
| publisher | Mashhad: Behzad Hassannezhad Kashani |
| record_format | Article |
| series | International Journal of Management, Accounting and Economics |
| spelling | doaj.art-1c00bf9c14bd425baaaf2798b96993ba2023-09-07T21:48:34ZengMashhad: Behzad Hassannezhad KashaniInternational Journal of Management, Accounting and Economics2383-21262019-12-01612891905114658An Empirical Association between Audit Quality and Risk Taking toward Value Creation in IranSaeed Pakdelan0Alireza Azarberahman1Jalal Azarberahman2Ebrahim Timori3Department of Accounting, Shandiz Institute of Higher Education, Mashhad, IranDepartment of Accounting, Shandiz Institute of Higher Education, Mashhad, IranAssistant Professor- Supreme Audit Court of Iran, Mashhad, IranDepartment of Accounting, Shandiz Institute of Higher Education, Mashhad, IranIn the financial literature, risk-taking and investment-related decisions are among the most important decisions for companies that make optimal decisions in these two areas, optimally allocating resources and directing financial resources to economic investments and profitable projects for value creation. The purpose of the research is to investigate the relationship between audit quality and risk taking on value creation in firms listed in Tehran Stock Exchange (TSE). The research used five components of auditor's specialist, tenure, audit size, ownership concentration, and board of director’s independence to evaluate audit quality. The statistical population of the study includes the companies listed in TSE. Using a screening method, 610 firm-year data were selected for a 5-year period (2013-2017). This research is based on panel data and multivariate regression method. The research findings show that among these five components as well as the risk factor, only the variables of auditor tenure and ownership concentration have a significant effect on corporate value creation. The originality of the results of the research contributes to the auditing and capital market in TSE.https://www.ijmae.com/article_114658_d6c486134847a38c66428704e1be4414.pdfrisk-takingaudit qualityvalue creation |
| spellingShingle | Saeed Pakdelan Alireza Azarberahman Jalal Azarberahman Ebrahim Timori An Empirical Association between Audit Quality and Risk Taking toward Value Creation in Iran International Journal of Management, Accounting and Economics risk-taking audit quality value creation |
| title | An Empirical Association between Audit Quality and Risk Taking toward Value Creation in Iran |
| title_full | An Empirical Association between Audit Quality and Risk Taking toward Value Creation in Iran |
| title_fullStr | An Empirical Association between Audit Quality and Risk Taking toward Value Creation in Iran |
| title_full_unstemmed | An Empirical Association between Audit Quality and Risk Taking toward Value Creation in Iran |
| title_short | An Empirical Association between Audit Quality and Risk Taking toward Value Creation in Iran |
| title_sort | empirical association between audit quality and risk taking toward value creation in iran |
| topic | risk-taking audit quality value creation |
| url | https://www.ijmae.com/article_114658_d6c486134847a38c66428704e1be4414.pdf |
| work_keys_str_mv | AT saeedpakdelan anempiricalassociationbetweenauditqualityandrisktakingtowardvaluecreationiniran AT alirezaazarberahman anempiricalassociationbetweenauditqualityandrisktakingtowardvaluecreationiniran AT jalalazarberahman anempiricalassociationbetweenauditqualityandrisktakingtowardvaluecreationiniran AT ebrahimtimori anempiricalassociationbetweenauditqualityandrisktakingtowardvaluecreationiniran AT saeedpakdelan empiricalassociationbetweenauditqualityandrisktakingtowardvaluecreationiniran AT alirezaazarberahman empiricalassociationbetweenauditqualityandrisktakingtowardvaluecreationiniran AT jalalazarberahman empiricalassociationbetweenauditqualityandrisktakingtowardvaluecreationiniran AT ebrahimtimori empiricalassociationbetweenauditqualityandrisktakingtowardvaluecreationiniran |