The Impact of Litigation Risk and Auditor Size on Auditor Conservatism and Auditor Conservatism on Information Asymmetry

Document Type : Original Article

Authors

• Hadi Daneshvar ¹
• Marjan Samaie ²
• Rasoul Baradaran Hasanzadeh ¹

¹ Department of Accounting, Islamic Azad University, Tabriz, Iran

² Department of Accounting, Osveh Higher Education Institution, Tabriz, Iran

10.22067/ijaaf.v3i3.89119

Abstract

This study examines the 'The impact of litigation risk and auditor size on auditor conservatism and auditor conservatism on information asymmetry.' This study is applied research, and its design is quasi-experimental, using a post-event approach. The statistical population of the study is the companies listed on the Tehran Stock Exchange. The required information was extracted from audited financial statements of 112 companies from 2010 through 2016. The results of this study showed that there is a significant relationship between litigation risk, auditor’s size, and auditor’s conservatism. But there is no significant relationship between auditor’s conservatism and information asymmetry.

Keywords

• Auditor Conservatism
• Economic Consequences of Auditor Conservatism

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References

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