The Value Relevance of Audit report, Auditor Type and Auditor Tenure: Evidence from Iran

Banimahd, Bahman; Poorzamani, Zahra; Ahmadi, Saeid Ali

doi:10.5296/ajfa.v5i1.2787

Cited by 7 publications

(13 citation statements)

References 25 publications

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“…Empiricamente, o relatório de auditoria terá valor informacional relevante se for verificada uma associação com o preço das ações e se essa relação ocasionar mais exatidão na previsão de valores de mercado (Banimahd et al 2013;Barth, 2006).…”

Section: A Opinião Do Auditor Independente E O Mercado De Capitaisunclassified

“…É esperada uma relação positiva com o retorno das ações, pois se espera que as empresas tenham sido auditadas por empresas com maior expertise (Pornupatham, 2015;Robu & Robu, 2015;Banimahd et al, 2013;Arruda et al, 2012); Risco = variável representativa de dependência financeira, sendo a relação entre passivo total e ativo total. Reflete a presença de capital de terceiros, de longo prazo, na estrutura de capital da firma, esperando-se uma relação negativa com o retorno (Pornupatham, 2015;Batista, Pereira, Silva & Imoniana, 2010); ROA = representativa de desempenho, sendo a relação entre o lucro operacional e a diferença entre ativo total e lucro líquido.…”

Section: Metodologiaunclassified

“…Outro ponto observado, nos estudos anteriores, é a consideração apenas dos relatórios modificados e não modificados (Arruda et al, 2012, Banimahd, Poorzamani, & Ahmadi, 2013, Dood et al, 1984, Dopuch et al, 1986, Ittonen, 2012, Morandi et al, 2011. Contudo, Morandi et al (2011) sugeriram que as análises fossem por tipos de opinião do relatório.…”

Section: Introductionunclassified

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Influência da Opinião do Auditor no Retorno das Ações das Empresas Brasileiras de Capital Aberto

Souza¹,

Nardi²

2018

CGG

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RESUMONo que diz respeito à redução da assimetria informacional em decisões de investimentos, os investidores podem diminuir incertezas na avaliação de uma empresa, ao analisar o relatório de auditoria independente, uma vez que ele é capaz de atestar a fidelidade às normas contábeis das informações divulgadas pelas empresas. Nesse contexto, o objetivo deste estudo foi analisar a relação entre a opinião divulgada no relatório do auditor independente e o retorno das ações das empresas brasileiras de capital aberto. Foi considerado o período de 2010 a 2014, mediante análise de correlação, teste de Mann Whitney e regressão com dados dispostos em painel. Estatisticamente, os resultados não foram conclusivos quanto ao impacto do tipo de opinião da auditoria no retorno das ações. Houve indícios de que há reação negativa do mercado frente aos relatórios com ênfase e reação positiva na presença de relatórios limpos e com ressalva, o que pode significar que a publicação de um relatório com ressalva pode gerar maior ganho para a empresa do que o prejuízo dessa publicação. A pesquisa aponta para a necessidades de revisão e reflexão, tanto pelas empresas de auditoria quanto pelos órgãos reguladores, quanto à representatividade da atuação do auditor no mercado de capitais.Palavras-chave: Relatório limpo; Relatório modificado; Retorno das ações. ABSTRACT In considering the reduction of informational asymmetry on investment decisions, investors

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Section: A Opinião Do Auditor Independente E O Mercado De Capitaisunclassified

Section: Metodologiaunclassified

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Influência da Opinião do Auditor no Retorno das Ações das Empresas Brasileiras de Capital Aberto

Souza¹,

Nardi²

2018

CGG

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“…It is necessary to observe more reports over time to understand how long the same audit firm is working for the same client. Banimahd et al (2013) found that when the tenure of auditors is long, it has a negative impact on the value relevance of accounting amounts. Assuming auditor tenure as a proxy of the independence of the auditor, the higher the tenure is, the more probable it is that opportunistic behaviours due to familiarity between the audit company and the audited company could make accounting amounts less reliable and relevant for investors' decisions.…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

“…There are also scholars who found no evidence about the relation between the auditor opinion and the value relevance of accounting amounts. Analysing 156 companies listed on the Tehran Stock Exchange (TSE) over a period of 10 years, Banimahd et al (2013) found that unqualified audit reports and other audit reports do not differ in the capital market.…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Do (Audit Firm and Key Audit Partner) Rotations Affect Value Relevance? Empirical Evidence from the Italian Context

Mechelli¹,

Cimini²

2016

IBR

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This research aims to investigate whether and to what extent investors place more weight on accounting amounts disclosed in annual reports issued by entities that experienced a rotation of the audit firm or of the key audit partner. Analysing a sample of 97 non-financial entities listed in the Milan stock exchange over the period 2006-2014, the paper provides evidence that rotations positively affect the value relevance of accounting amounts. In addition, the paper shows how the audit firm rotation and the key partner rotation act only in part as substitutes, as the former is more capable than the latter of positively affecting the value relevance of earnings and book value. These results provide a theoretical contribution to the literature and have significant implications for standard setters. The rotations, even though could determine a loss of client-specific knowledge, nonetheless improve the value relevance of accounting amounts. New rules that require the key partner rotation have a positive effect as long as they do not consider such rotation as an alternative to the rotation of the audit firm being the partner rotation less capable to affect the value relevance of accounting amounts than the key audit firm rotation.

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Auditor characteristics and the financial reporting quality: the moderating role of the client business strategy

Soroushyar

2022

AJAR

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PurposeThis study examines whether and how a client's business strategy can affect the relationship between auditor characteristics and financial reporting quality.Design/methodology/approachIn this study, auditor industry specialization and tenure were used as proxies for auditor characteristics. The client business strategy was measured using the resource allocation index method. Finally, discretionary accruals are used to assess financial reporting quality. This study includes 1,450 firm-year observations and 145 companies listed on the Tehran Stock Exchange (TSE) over a ten-year period from 2011 to 2020. The research hypotheses were analyzed using a multivariate regression model and panel data.FindingsThe results show that auditor industry specialization increases financial reporting quality. This relationship improves when the client's business strategy deviates from the industry–normal strategy. The research findings state that auditor tenure has a positive association with financial reporting quality, and this relationship is strengthened when the company's business strategy deviates from the normal industry strategy.Practical implicationsThe findings of this study provide important evidence for investors, firm management, and auditing firms. Investors must consider the auditor characteristics when selecting companies listed on the TSE. Managers of Iranian companies are advised to consider the auditor's characteristics when choosing an audit firm to increase financial reporting quality. Audit firms should evaluate their business strategies in audit planning to increase the quality of financial reporting.Originality/valueTo the best of the authors’ knowledge, this is the first empirical study to examine the relationship between auditor characteristics and the financial reporting quality in the emerging capital market by considering the clients' business strategy.

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The Value Relevance of Audit report, Auditor Type and Auditor Tenure: Evidence from Iran

Cited by 7 publications

References 25 publications

Influência da Opinião do Auditor no Retorno das Ações das Empresas Brasileiras de Capital Aberto

Influência da Opinião do Auditor no Retorno das Ações das Empresas Brasileiras de Capital Aberto

Do (Audit Firm and Key Audit Partner) Rotations Affect Value Relevance? Empirical Evidence from the Italian Context

Auditor characteristics and the financial reporting quality: the moderating role of the client business strategy

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