The Effect of Auditor Conservatism on Company Innovation

Purpose: In today's financial markets there is a great deal of pressure forcompanies to meet investors' expectations. Exchanging information betweencompanies and users is done by auditors. On the other hand, competition infinancial market and future manufacture, cause some necessary plans for firms, forexample: investment in R&D, and as a result in innovation.Methods: this is a qualitative and post-event research. To obtain the goals of theresearch, first, by reviewing the literature, model of computing data of auditorconservatismwas recognized. In the next step, information in an innovation linearregression model was progressed. In order to examine the hypothesis, we appliedsome limitations, then the final sample including of ۱۶۰ firms, and data ofcompanies selected from ۲۰۱۰ to ۲۰۱۹ on the Tehran Stock Exchange. Base onstatistical techniques such as multivariate linear regression analysis, fixed paneldata (cross-section weight) and control of fixed effects at the firm and year levelthat were used to test the research hypotheses.Results: according to the result, there is a negative and significant relationshipbetween auditor conservatism and company innovation. According to the result,companies with conservative auditors will have less innovation.

کلیدواژه ها:

auditor conservatism ، innovation ، R&D