Moslem Tahmasbi; Hesam Rahmani; Mohammad Zamani Bakhtiarvand
Abstract
In this study, the effect of audit quality on the market value of cash holdings was investigated. The company’s auditor expertise and tenure were considered as measures of audit quality. The regression model developed by Faulkender and Wang (2006) was applied to estimate the market value of cash ...
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In this study, the effect of audit quality on the market value of cash holdings was investigated. The company’s auditor expertise and tenure were considered as measures of audit quality. The regression model developed by Faulkender and Wang (2006) was applied to estimate the market value of cash holdings.Target sample includes 175 listed companies in the Tehran Stock Exchange during 2008-2014 (1387-1393Iranian calendars). In this study, it was supposed that audit quality affects the market value of cash holdings. The hypotheses were examined using panel data and a multivariate regression model of generalized least squares. The results indicated that the company’s auditor expertise affects the market value of cash holdings (the positive and significant relationship statistically). However, tenure does not affect the market value of cash holdings.
Daruosh Foroghi; Moslem Tahmasbi; Mohammad Zamani Bakhtiarvand
Volume 5, Issue 4 , April 2018, , Pages 244-259
Abstract
The present study investigates the relationship between accounting conservatism and earnings management using Benford's Law. In this study, the quantitative index of conservatism (cscore) by Khan & Watts (2009) was considered as the accounting conservatism. Target sample includes 363 listed companies ...
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The present study investigates the relationship between accounting conservatism and earnings management using Benford's Law. In this study, the quantitative index of conservatism (cscore) by Khan & Watts (2009) was considered as the accounting conservatism. Target sample includes 363 listed companies in Tehran Stock Exchange during 1999-2015. Divergence between the actual earning and loss frequencies and Benford' distribution has been taken into account. Chi-square and Z-statistic tests, regards to degrees of conservatism were applied. The results revealed that in companies with low or high levels of conservatism, distribution of earning and lose first to fourth digits follow Benford's law. However the distribution of first and second digits of earning, and first to fourth digits of losses differ from the expected distribution when there is an increase in conservatism. Divergence between the third and fourth digits and expected distribution reduced, when conservatism increases.
