The Effect of Corporate Governance and Audit Quality on Disclosure Quality: Evidence from Tehran Stock Exchange

  • Mahdi Salehi
  • Mahdi Moradi
  • Navid Paiydarmanesh

Abstract

The current study examines the effect of audit quality and internal and external corporate governance on the quality of disclosure of financial statements. In order to achieving the objectives of the study 7 hypotheses about audit quality and 7 hypotheses about internal and external corporate governance are postulated in the current study during 2009-2014 in Iran. Data analyzed in two regression models via the R software. The results indicate that there is no significant positive relationship between independent audit quality and the quality of disclosure of financial statements information, but there is a significant relationship between corporate governance and the quality of disclosure of financial statements information. So far, the current study is the first paper on the subject which conducted in the developing country such like Iran, the results of the study may give the strength to the auditing literature.

Keywords

Internal corporate governance, external corporate governance, audit quality, information disclosure quality, Tehran Stock Exchange
Published
22-12-2016
How to Cite
SALEHI, Mahdi; MORADI, Mahdi; PAIYDARMANESH, Navid. The Effect of Corporate Governance and Audit Quality on Disclosure Quality: Evidence from Tehran Stock Exchange. Periodica Polytechnica Social and Management Sciences, [S.l.], v. 25, n. 1, p. 32-48, dec. 2016. ISSN 1587-3803. Available at: <https://pp.bme.hu/so/article/view/8354>. Date accessed: 25 sep. 2017. doi: https://doi.org/10.3311/PPso.8354.
Section
Articles