Investigating of Influence of firm Characteristics on Interest Quality

Abstract

In this research, it has done to investigate the influence of firm characteristics on interest quality of
corporations of accepted in Tehran Stock Exchange, during 2009-2014. For this research 152 companies
of accepted in Tehran Stock Exchange were investigated during the mentioned period. To test research
hypotheses combinational regression analysis of fixed effects was used. In this research to determine the
characteristics of the company we used market variables and factors including price ratio to earnings of
each share and market value ratio to office value of shareowners rights, commercial strategy based on
diversifying ownership structure based on the standards of institutional ownership structure, board of
directors ownership percentage and debt ratio to shareowners rights, and furthermore auditing
performance was used according to the standard of auditing quality. Research findings show that among
all the factors, market value ratio to office value of shareowners rights has direct effect on various
standards of earnings quality. In addition, effect of price ratio earnings of each share on earnings stability
is inverted. This is while commercial strategy (diversifying strategy) and auditing quality has no effect on
various direct and inverted earnings quality. Among various standards of ownership structure, debt ratio
to shareowners rights has direct effect on standards of earnings quality. Furthermore, effect of
institutional ownership on accruals quality is direct.
Other results indicate a negative and significant effect of sale volatility and operational cash current on
various standards of earnings quality, and negative and significant effect of financial leverage on stability
and predictability of earnings during the research period.