The Relationship between the Audit Outputs and Managerial Entrenchment

The present study investigates the relationship between audit outputs (including audit quality, type of opinion, audit fee, and timeliness) and managerial entrenchment in firms listed on the Tehran Stock Exchange. The multivariate regression model is used for hypothesis testing, research hypotheses...

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Main Authors: Hamideh Nazaridavaji, Raha Rajaei Khoramabad
Format: Article
Language:English
Published: Ferdowsi University of Mashhad 2021-03-01
Series:Iranian Journal of Accounting, Auditing & Finance
Subjects:
Online Access:https://ijaaf.um.ac.ir/article_40087_2c0f4bcf0ce109947b375052c04ad9e2.pdf
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author Hamideh Nazaridavaji
Raha Rajaei Khoramabad
author_facet Hamideh Nazaridavaji
Raha Rajaei Khoramabad
author_sort Hamideh Nazaridavaji
collection DOAJ
description The present study investigates the relationship between audit outputs (including audit quality, type of opinion, audit fee, and timeliness) and managerial entrenchment in firms listed on the Tehran Stock Exchange. The multivariate regression model is used for hypothesis testing, research hypotheses were tested using a sample of 678 listed observations on the Tehran Stock Exchange during 2012-2017, and the exploratory factor analysis of 12 variables (including CEO duality, financial expertise, and CEO industry, board compensation, managerial ownership, tenure, and CEO consistency, board independence, financial expertise, and board industry, correlation and board effort) is used for examining managerial entrenchment. As expected, the results show a significant relationship between audit outputs and managerial entrenchment, such that audit fee and audit quality are negatively associated with managerial entrenchment, and the relationship between report delay and type of opinion and managerial entrenchment is positive and significant. By adding new variables to measuring managerial entrenchment, the present study provides a better evaluation of this index. Moreover, it contributes to the field because the previous studies have benefited from limited proxies for this purpose.
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spelling doaj-art-389dd52f212c4973bbff22e5f92f46cd2024-12-25T06:45:36ZengFerdowsi University of MashhadIranian Journal of Accounting, Auditing & Finance2717-41312588-61422021-03-01519911210.22067/ijaaf.2021.70392.102740087The Relationship between the Audit Outputs and Managerial EntrenchmentHamideh Nazaridavaji0Raha Rajaei Khoramabad1Faculty of Economics and Administrative sciences, Ferdowsi University of Mashhad, Mashhad, IranFaculty of Economics and Administrative Sciences, Imam Reza International University, Mashhad, IranThe present study investigates the relationship between audit outputs (including audit quality, type of opinion, audit fee, and timeliness) and managerial entrenchment in firms listed on the Tehran Stock Exchange. The multivariate regression model is used for hypothesis testing, research hypotheses were tested using a sample of 678 listed observations on the Tehran Stock Exchange during 2012-2017, and the exploratory factor analysis of 12 variables (including CEO duality, financial expertise, and CEO industry, board compensation, managerial ownership, tenure, and CEO consistency, board independence, financial expertise, and board industry, correlation and board effort) is used for examining managerial entrenchment. As expected, the results show a significant relationship between audit outputs and managerial entrenchment, such that audit fee and audit quality are negatively associated with managerial entrenchment, and the relationship between report delay and type of opinion and managerial entrenchment is positive and significant. By adding new variables to measuring managerial entrenchment, the present study provides a better evaluation of this index. Moreover, it contributes to the field because the previous studies have benefited from limited proxies for this purpose.https://ijaaf.um.ac.ir/article_40087_2c0f4bcf0ce109947b375052c04ad9e2.pdfaudit report delayaudit qualityaudit feetype of audit opinionmanagerial entrenchment
spellingShingle Hamideh Nazaridavaji
Raha Rajaei Khoramabad
The Relationship between the Audit Outputs and Managerial Entrenchment
Iranian Journal of Accounting, Auditing & Finance
audit report delay
audit quality
audit fee
type of audit opinion
managerial entrenchment
title The Relationship between the Audit Outputs and Managerial Entrenchment
title_full The Relationship between the Audit Outputs and Managerial Entrenchment
title_fullStr The Relationship between the Audit Outputs and Managerial Entrenchment
title_full_unstemmed The Relationship between the Audit Outputs and Managerial Entrenchment
title_short The Relationship between the Audit Outputs and Managerial Entrenchment
title_sort relationship between the audit outputs and managerial entrenchment
topic audit report delay
audit quality
audit fee
type of audit opinion
managerial entrenchment
url https://ijaaf.um.ac.ir/article_40087_2c0f4bcf0ce109947b375052c04ad9e2.pdf
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AT raharajaeikhoramabad relationshipbetweentheauditoutputsandmanagerialentrenchment