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The Determinant Factors of Auditor Switch Among Companies Listed on Tehran Stock Exchange

International Research Journal of Finance and Economics ISSN 1450-2887, Issue 80 (2011)

11 Pages Posted: 4 Mar 2013  

Arezoo Aghaei Chadegani

Islamic Azad University; University Kebangsaan Malaysia

Zakiah Muhammaddun Mohamed

National University of Malaysia (UKM) - School of Accounting

Azam Jari

Islamic Azad University (IAU)

Date Written: March 3, 2011

Abstract

Regarding to the impact of auditor switching on auditor’s independence, this issue become an important subject and widely studied in developed countries recently. In spite of the growing concerns of this issue, few studies have been done in Iran to investigate which factors influenced auditor switch. The aim of this research is to find major determinants of auditor switch among companies listed on Tehran stock exchange. In order to verify the determinants of auditor switch, logistic regression model is used in this study. The Sample consists of 182 companies that listed on Tehran Stock Exchange (TSE). From these 182 companies, 91 companies had auditor switch during 2003 till 2007 and 91 companies without auditor switch. The results indicate that between 6 factors that are analyzed in this research only auditor size is significantly related to auditor switch among companies listed on Tehran Stock Exchange. Furthermore, consistent with previous studies, this study showed that there is no significant relationship between receiving qualified audit opinion and auditor switch. Thus, this result suggests that opinion shopping is not a concern in TSE.

Keywords: Auditor Switch, Logistic Regression, Tehran Stock Exchange, Determinant Factors

Suggested Citation

Aghaei Chadegani, Arezoo and Muhammaddun Mohamed, Zakiah and Jari, Azam, The Determinant Factors of Auditor Switch Among Companies Listed on Tehran Stock Exchange (March 3, 2011). International Research Journal of Finance and Economics ISSN 1450-2887, Issue 80 (2011). Available at SSRN: https://ssrn.com/abstract=2227597

Arezoo Aghaei Chadegani (Contact Author)

Islamic Azad University ( email )

Tehran
Iran

University Kebangsaan Malaysia ( email )

Malaysia

Zakiah Muhammaddun Mohamed

National University of Malaysia (UKM) - School of Accounting ( email )

Faculty of Economics and Business
Universiti Kebangsaan Malaysia
Bangi, Selangor 43600
Malaysia

Azam Jari

Islamic Azad University (IAU) ( email )

Hamedan, Iran
Tehran, Isfahan 461-15655
Iran

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