Auditor Switching and Abnormal Returns
Every investor pays special attention to the main factor in their decisions: a return. What is essential for users of financial information is not the procedures and principles used in accounting, but the exit from the financial system, because it helps them achieve their goals. Many capital market...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Ferdowsi University of Mashhad
2021-12-01
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| Series: | Iranian Journal of Accounting, Auditing & Finance |
| Subjects: | |
| Online Access: | https://ijaaf.um.ac.ir/article_41022_2c624a2e435d9da42521e072d49572e8.pdf |
| _version_ | 1811256829698637824 |
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| author | Mohammad Javad Zare Bahnamiri Narges Sarlak Niloofar Beyki |
| author_facet | Mohammad Javad Zare Bahnamiri Narges Sarlak Niloofar Beyki |
| author_sort | Mohammad Javad Zare Bahnamiri |
| collection | DOAJ |
| description | Every investor pays special attention to the main factor in their decisions: a return. What is essential for users of financial information is not the procedures and principles used in accounting, but the exit from the financial system, because it helps them achieve their goals. Many capital market concerns focus on accounting and auditing operations. Therefore, the auditor's independence is the basis of public trust in the audit process and the assurance of auditors` reports. For this purpose, this study investigates the effect of auditor switching on abnormal returns. Therefore, three hypotheses have been formulated, and a sample consisting of 365 companies listed on the Tehran Stock Exchange during the years 2010 to 2020 has been selected. The results indicate that auditor switching has no significant effect on abnormal returns. Also, between the CU switch and CD switch, the CD switch has a negative and significant effect on abnormal returns. |
| first_indexed | 2024-04-12T17:47:14Z |
| format | Article |
| id | doaj.art-778c55795d244caa9e7efb33f884f6d9 |
| institution | Directory Open Access Journal |
| issn | 2717-4131 2588-6142 |
| language | English |
| last_indexed | 2024-04-12T17:47:14Z |
| publishDate | 2021-12-01 |
| publisher | Ferdowsi University of Mashhad |
| record_format | Article |
| series | Iranian Journal of Accounting, Auditing & Finance |
| spelling | doaj.art-778c55795d244caa9e7efb33f884f6d92022-12-22T03:22:36ZengFerdowsi University of MashhadIranian Journal of Accounting, Auditing & Finance2717-41312588-61422021-12-0154395310.22067/ijaaf.2021.4102241022Auditor Switching and Abnormal ReturnsMohammad Javad Zare Bahnamiri0Narges Sarlak1Niloofar Beyki2Assistant Professor, Accounting Department, University of Qom, Qom, IranDepartment of Accounting, Faculty of economic and management, Qom universityDepartment of Accounting, Faculty of Economic and Management and , Qom universityEvery investor pays special attention to the main factor in their decisions: a return. What is essential for users of financial information is not the procedures and principles used in accounting, but the exit from the financial system, because it helps them achieve their goals. Many capital market concerns focus on accounting and auditing operations. Therefore, the auditor's independence is the basis of public trust in the audit process and the assurance of auditors` reports. For this purpose, this study investigates the effect of auditor switching on abnormal returns. Therefore, three hypotheses have been formulated, and a sample consisting of 365 companies listed on the Tehran Stock Exchange during the years 2010 to 2020 has been selected. The results indicate that auditor switching has no significant effect on abnormal returns. Also, between the CU switch and CD switch, the CD switch has a negative and significant effect on abnormal returns.https://ijaaf.um.ac.ir/article_41022_2c624a2e435d9da42521e072d49572e8.pdfabnormal returnauditor switchingbehavioral financesix-factor model fama & french |
| spellingShingle | Mohammad Javad Zare Bahnamiri Narges Sarlak Niloofar Beyki Auditor Switching and Abnormal Returns Iranian Journal of Accounting, Auditing & Finance abnormal return auditor switching behavioral finance six-factor model fama & french |
| title | Auditor Switching and Abnormal Returns |
| title_full | Auditor Switching and Abnormal Returns |
| title_fullStr | Auditor Switching and Abnormal Returns |
| title_full_unstemmed | Auditor Switching and Abnormal Returns |
| title_short | Auditor Switching and Abnormal Returns |
| title_sort | auditor switching and abnormal returns |
| topic | abnormal return auditor switching behavioral finance six-factor model fama & french |
| url | https://ijaaf.um.ac.ir/article_41022_2c624a2e435d9da42521e072d49572e8.pdf |
| work_keys_str_mv | AT mohammadjavadzarebahnamiri auditorswitchingandabnormalreturns AT nargessarlak auditorswitchingandabnormalreturns AT niloofarbeyki auditorswitchingandabnormalreturns |