Journal of Accounting and Management Vision

Journal of Accounting and Management Vision

Investigating the Relationship between Financial Constraints, Audit Quality and External Financing in Companies Listed on the Tehran Stock Exchange.

Document Type : Original Article

Authors
mohammad Hossein Ashrafi 1
Hossein kazemi 2
1 Master's degree, Auditing, Qazvin Branch, Islamic Azad University, Tehran, Iran
2 Assistant Professor, Department of Accounting, Qazvin Branch, Islamic Azad University, Qazvin, Iran
Abstract
Companies need to finance investment projects in order to grow and continue their activity. However, the disadvantages and advantages of each of the financing methods and the different characteristics of the companies have turned determining the optimal combination of financing sources into one of the most challenging decisions for managers. The purpose of the present study is to investigate the relationship between financial constraints, audit quality and external financing in companies listed on the Tehran Stock Exchange. This research is practical in terms of purpose and analytical in nature. The statistical sample of the research is 105 companies from the companies admitted to the Tehran Stock Exchange during the years 2015 to 2022. The findings of this research show that there is a positive and significant relationship between financial constraints and audit quality. Also, the findings of the second hypothesis show that there is no significant relationship between financial constraints and foreign financing. The third hypothesis also indicates that audit quality leads to a positive and meaningful relationship between financial constraints and external financing.
Keywords
financial constraints
audit quality
external financing

Subjects