Examination of the audit quality on the proportion of individual investors, listed companies in Tehran Stock Exchange

Abstract

Attention to aspects of the economic information, financial reporting, and accounting systems play a
crucial role in the capital market. Accordingly accounting standard setting attempt to adapt on accounting
system information needed by investors with useful information and increase audit quality. The main
purpose of this study was to evaluate the impact on quality of financial reporting of listed companies the
proportion of individual investors in Tehran Stock Exchange listed companies during 2009 to 2014,
respectively. In this study, audit quality as independent variables and the ratio of real investors
(individual) is considered as the dependent variable. The study combined data and panel data with fixed
and random effects were used, the results of 213 companies using multiple regression analysis at 95%
shows audit quality on the ratio of real investment company direct impact.