Investigating the Impact of Selecting Audit Institutions A on Earnings and Value Management of Corporate Stocks

The present study examines the impact of the selection of audit firms on the management of earnings and the day-to-day value of a company's stock. This research is applied in terms of purpose and in terms of methodology, correlation is a type of causal (post-event) research. The statistical population of the study was all companies listed on the Tehran Stock Exchange, which were systematically eliminated by 121 companies as a sample of the selected research and were surveyed over a period of 7 years between 2012 and 1397. Modified Jones model was used to measure the profit management variable. The method used to collect information is library and multiple linear regression has been used to test the hypotheses. Stata version 15 software was used to run the tests and estimate the models. The results show that the choice of audit firms A has a negative and significant effect on the management of profits based on accruals. That is, in companies whose audits are performed by top-ranked institutions, profit management based on accruals is reduced. However, the choice of audit firms A does not affect the value of the company's stock on the day.