THE STUDY OF ECONOMIC CRISIS ROLE ON THE ACCOUNTING QUALITY IN ACCEPTED COMPANIES ON TEHRAN STOCK EXCHANGE

Abstract

Economic conditions may have different effects on the companies and influenced on accounting procedure treatment and outcome quality of the way of using these procedures.Firms’ directors are also based on agency theory and in order to their benefits, they are looking to use opportunistic behavior, they consider economic situation for rate of earning management. Accordingly, in the
current research, researchers examined data on 92 companies in the period of 7 years from the years 2007 to 2013 to examine the role of the economic crisis on the accounting quality of at companies accepted on the Stock Exchange of Tehran. The results of the analysis show that the assumption of the earning management in financial non- crisis period is higher than during the financial crisis. On
the other hand there is significant negative relationship between auditor’s level and discretionary accruals during the financial crisis and it has been used less accruals for the companies that their auditors are audit office. The results also showed that during the financial crisis, Information value burden of prepared reports of the companies which have great auditor (audit organization is their
audit) than companies that have the small auditor (audit organization is not their audit) and auditor’s level have positive affection to the relevance of the information contained in the financial statements in the period of financial crisis