The Study Of The Effect Of The Modified Auditor’s Opinion On The Debt Structure And Excess Stock Returns Of The Companies Admitted To the Tehran Stock Exchange

Abstract

Investors need reliable information for decision making in order to make optimal economic decisions. This research investigates the effect of the modified auditor's opinion on the debt structure and excess stock returns of the companies admitted to the Tehran Stock Exchange. The type of auditor's opinion has been considered as independent variable and debt structure and excess stock returns as dependent variables. The statistical sample included 102 companies admitted to the Tehran Stock Exchange during the years 2012-2016. The required data have been collected from the Tehran Stock Exchange Library, Compact CD of Rah Avard Novin and the Codal site. Data analysis has been performed using Eviews 9 software. In the study, a multivariate regression model and panel data method were used. To study the relationship between the mentioned variables, two hypotheses were developed. The results show that there is a negative and significant relationship between the modified auditor's opinion and debt structure and excess stock returns

Keywords

• auditor's opinion
• stock returns
• excess stock returns
• debt structure
• auditor's report