Asian Journal of Research in Banking and Finance
  • Year: 2014
  • Volume: 4
  • Issue: 2

Investigating the Relationship between Audit Opinion and Earning Management in the Companies Listed in Tehran Stock Exchange

  • Author:
  • Abolfazl Ghadiri Moghaddama, Saeed Pakdelanb, Seyede Naeimeh Zeinabic, Elham Valieic, Samira Rahiminezhadc
  • Total Page Count: 12
  • Page Number: 48 to 59

aAssistant Professor, Department of Accounting, Mashhad Branch, Islamic Azad University, Mashhad, Iran

bPh.D. Student of Accounting, Department of Accounting, Mazandaran University, Mazandaran, Iran

cM.A. Student of Accounting, Department of Accounting, Mashhad Branch, Islamic Azad University, Mashhad, Iran

Online published on 20 February, 2014.

Abstract

The main purpose of this study is to examine the relationship between earning management and audit opinion in the companies listed in Tehran Stock Exchange. The sample of this study, includes 110 companies listed in the Tehran Stock Exchange during the period 2007 to 2011 and for processing and testing hypotheses, Estimated Generalized Least Squares Estimator (EGLS) method is used. The study finds no evidence of the impact of earning management on the audit opinion in the companies listed in Tehran Stock Exchange. But company size and ROA have significant impact on the auditor opinion.

Keywords

Audit Opinion, Earning Management, Discretionary Accruals, Tehran Stock Exchange