Evaluation of the Effect of Independent Audit Quality and Ownership Structure on Earnings Management in the Listed Companies of Tehran Stock Exchange

Abstract

Abstract: The main objective of this study is to evaluate the effect of independent audit quality and ownership structure on earnings management. In this study, independent audit quality and ownership structureas the dependent variable and earnings management as the independent variable were tested. The research method, in terms of purpose, is functional and in term of method, is descriptive and correlational and also in terms of time, it is a kind of causative research. Data collection method is library and sampling method in recent study is screening that 170 companies had been investigated during the period. Spatial domain of the research is listed companies on Tehran Stock Exchange and its time domain is the 5-years period from2010 to 2014. Also, in order to analyze and test research hypotheses, multivariate regression method was used. The results of the study indicate that the audit qualityhas no effect on management. And shows that ownership structure effects on earnings management. The results also show that the ownership structure does not modify the relationship between audit quality and earnings management