The Effect of Audit Quality on the Market Value of Cash Holdings: Evidence from Tehran Stock Exchange and IACPA

In this study, the effect of audit quality on the market value of cash holdings was investigated. The company’s auditor expertise and tenure were considered as measures of audit quality. The regression model developed by Faulkender and Wang (۲۰۰۶) was applied to estimate the market value of cash holdings.Target sample includes ۱۷۵ listed companies in the Tehran Stock Exchange during ۲۰۰۸-۲۰۱۴ (۱۳۸۷-۱۳۹۳Iranian calendars). In this study, it was supposed that audit quality affects the market value of cash holdings. The hypotheses were examined using panel data and a multivariate regression model of generalized least squares. The results indicated that the company’s auditor expertise affects the market value of cash holdings (the positive and significant relationship statistically). However, tenure does not affect the market value of cash holdings.

کلیدواژه ها:

Audit Quality ، company’s auditor expertise ، cash holdings ، tenure