Document Type : Research Paper
Abstract
Abstract
Prior research suggests that the auditors' tenure increase audit quality. Also, auditors through their information intermediary and corporate governance roles, decrease crash risk by decreasing agency costs, aligning interests of managers and investors, decreasing malfeasance by managers, improving operations, quality financial reporting. SoThe aim of this study is to investigate the effect of short-term and long-term audit tenure on future stock price crashes of listed Companies in Tehran Stock Exchange. For this purpose three hypotheses are developed and data on the 99 companies in Tehran Stock Exchange for the period of 1384 to 1392 were analyzed. This regression model using panel data with fixed effects approach, reviews and tests. The results showed that short-term audit tenure has significantly positive and audit tenure and long-term audit tenure are significantly negative impact on future stock price crashes. Briefly,research findings showed that audit tenure Induce increase audit quality and in result decrase future stock price crashes in Tehran Stock Exchange.
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