Investigating the relationship between the characteristics of the company and the audit committee with the quality of financial reports

Abstract

In recent years, legislator have adopted several laws to create these mechanisms to improve financial reporting quality. One of these rules is the requirement for companies to form an audit committee. Therefore, the main purpose of this research is to investigate the relationship between the audit committee and the quality of financial reports in companies listed on the Tehran Stock Exchange. This research is descriptive in nature and applied in terms of its purpose. The population of the study is all of the companies listed on the Tehran Stock Exchange that 82 companies were selected during 2014 to 2018 for research hypotheses. The sampling method in this study is a systematic elimination. Estimation of the research model in the form of panel data and analysis is based on the fixed effects model and random effects by Eviews and SPSS software based on the combined data. Results indicated that the audit committee had a positive relationship with the quality of disclosure of financial reports in companies listed on the Tehran Stock Exchange.

Keywords

• audit committee
• disclosure quality of financial reports
• corporate governance
• tehran stock exchange