The Effect of Conditional Conservatism on Audit Fees of listed Companies in Tehran Stock Exchange

Document Type : Original Article

Authors

1 Full professor in Accounting. Faculty of Economic and Social Sciences, Shahid Chamran University, Ahvaz, Iran

2 PhD in Department of accounting, Hashtrood Branch, Islamic Azad University, Hashtrood, Iran

Abstract

The main propose of this research is the analyses of effect of Conditional Conservatism on Audit Fees of listed companies in Tehran Stock Exchange. In this study, The impact of conditional conservatism based on three models of a) Basu (1997) standard regression, b) the accruals–cash flows–based model, and c) the current and lagged earnings–changes model as well as their interaction with corporate governance indicators on audit fees for the 79 companies listed on the Stock Exchange, between the years 1391-1386, which were selected by random removal method, Has been investigated. Chow test are used to determine whether data are homogeneous or heterogeneous. The results of this test, indicate that either the regression method or form of panel data should be used. For panel data, to estimate the research model using the Eviews7 software, fixed effects and random effects models were used.The results show that the Conditional conservatism has a significant effect on audit fees. Interaction effect of conservatism models whit corporate governance indicators on audit fees, in total is not significant and on cases where the significance, this work is modify the audit fees.

Keywords

Accounting and Auditing Research
Volume 10, Issue 38
July 2018
Pages 5-20

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