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Investment Efficiency and Audit Fee from the Perspective of the Role of Financial Distress

Author

Listed:
  • Amir Ghafourian Shagerdi
  • Ali Mahdavipour
  • Reza Jahanshiri Ariyan Tashakori Baghdar
  • Mohammad Sajjad Ghafourian Shagerdi

Abstract

Purpose: The aim of the article is to present the author’s methodological proposal in the field of management and development planning, taking the opinions of the commune inhabitants. Design/Methodology/Approach: The statistical population of the study has included all listed companies in Tehran Stock Exchange. After sampling 141 companies were studied using data from 2011 to 2018 using the multiple regression method. Findings: The results show that there was a significant relationship between investment efficiency and audit fee, and financial distress had a significant effect on the relationship between investment efficiency and audit fee. Practical Implications: The managers working in Iran have greater confidence than firms to use auditors who receives less audit fee and the companies in a climate of financial distress have overconfident managers. Originality/Value: Since no empirical research has been conducted to study the aforementioned variables in Iran, the present study is innovative in this respect. Also the results are also applicable to other underdeveloped countries in the Middle East.

Suggested Citation

  • Amir Ghafourian Shagerdi & Ali Mahdavipour & Reza Jahanshiri Ariyan Tashakori Baghdar & Mohammad Sajjad Ghafourian Shagerdi, 2020. "Investment Efficiency and Audit Fee from the Perspective of the Role of Financial Distress," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 318-333.
    • Handle: RePEc:ers:journl:v:xxiii:y:2020:i:1:p:318-333
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    References listed on IDEAS

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    More about this item

    Keywords

    Investment efficiency; audit fee; financial distress; Tehran Stock Exchange.;
    All these keywords.

    JEL classification:

    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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