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Economic Consequences Qualified Audit Opinions: Evidence from listed Companies in Tehran Stock Exchange

Author Affiliations

  • 1 Department of Accounting, University of Shahid Chamran Ahvaz Ahvaz IRAN

Res. J. Recent Sci., Volume 3, Issue (10), Pages 89-95, October,2 (2014)

Abstract

The goal of this study is to answer to this question that qualified audit opinions could have what kinds of the consequences for companies? On the other side, shareholders, capital investors and creditors show what kind of reaction with regard to qualified audit opinions? With taking into consideration that audit opinions increase reliability of information that are accessible for investors and creditors, at the same time, representing of qualified audit opinions can increase the risk of information as well. This research examines the impact of qualified audit opinions on the expected return on common shareholders' and giving credibility by creditors. Statistic samples of this study are collected from 120 companies listed in Tehran Stock Exchange for the time period of 2004to 2011 and in order to examine hypothesis of this study panel data method of research was applied. Based on the findings of this study there is a Positive relationship between qualified audit opinions and the expected return on common shareholders and, on the contrary there is no relationship between qualified audit opinions and the granting of credit by the creditor.

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