ISJ Theoretical & Applied Science 01(33) 2016

ISPC Perspectives in science for 2016, Philadelphia, USA

Torabi R, Farshid M

THE EFFECT OF CORPORATE GOVERNANCE AND AUDIT EXPERT ON PREDICTION ACCURACY OF SHARES RETURN IN SELECTED INDUSTRY IN TEHRAN STOCK EXCHANGE.

Full Article: PDF

Scientific Object Identifier: http://s-o-i.org/1.1/TAS-01-33-3

DOI: http://dx.doi.org/10.15863/TAS.2016.01.33.3

Language: English

Citation: Torabi R, Farshid M (2016) THE EFFECT OF CORPORATE GOVERNANCE AND AUDIT EXPERT ON PREDICTION ACCURACY OF SHARES RETURN IN SELECTED INDUSTRY IN TEHRAN STOCK EXCHANGE. ISJ Theoretical & Applied Science, 01 (33): 11-17. Soi: http://s-o-i.org/1.1/TAS-01-33-3 Doi: http://dx.doi.org/10.15863/TAS.2016.01.33.3

Pages: 11-17

Published: 30.01.2016

Abstract: The important role of financial accounting and corporate governance is to help financial users about forming their expectations related to companies’ future interest. Previous studies have shown financial accountant experts in audit committee have relationship with high quality of financial reporting in companies. The aim of this research is to study the effect of corporate governance and professional auditor on accuracy of predicting the shares return in selected industries listed in Tehran Stock Exchange during 2006 to 2013. The results of research show that corporate governance indexes on the amount of first estimation remains as accuracy of predicting shares return variable as dependent variable in second pattern is significant and it indicates that the effect of the percent of biggest ownership on dependent variable of predicting shares return error is negative and significant, it is recommended that to reduce predicting shares return error and as a result increasing the accuracy of predicting shares return, financial managements of Tehran Stock Exchange companies must apply policies based on increasing the percent of biggest shares ownership. The effect of corporate governance variable on dependent variable of error of predicting shares return is negative and significant and it is recommended to reduce error of predicting shares return and as a result increasing the accuracy of predicting shares return, financial managements of Tehran Stock Exchange companies should apply based on increasing the percent of shares governance ownership.

Key words: corporate governance, expert auditor, predicting shares return.