Audit quality and labour investment efficiency

Document Type : Research Paper

Authors

1 Master's of Accounting and Ph.D. in Economics, Azad University, Marvdasht Branch, Marvdasht, Iran.

2 University of Sistan and Baluchestan

3 Department of Accounting and Finance, Faculty of Economics, Management & Accounting, Yazd University, Yazd, Iran

Abstract

This paper investigates the relation between audit quality and firm labour investment efficiency for 118 Tehran Stock Exchange-listed companies over 2009–2023. Since audit quality affects both the agency problem, information environment and monitoring environment, it would expect the efficiency of labour investment has a relation with the audit quality. The methodology of this study is a quantitative and ex-post and labour investment efficiency was measured using the Pinnuck and Lillis (2007) model. The results of research regression analysis showed that there is a positive and significant relationship between audit quality and firms’ labour investment efficiency. Also, the evidence showed that the relationship between audit quality and over- or under-investment in labour is negative and significant. These findings have important political implications for businesses and employment policymakers and also auditing profession.. . . . . . . . . . . . . . . . . . . . .

Keywords

Main Subjects

References

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Journal of Accounting Advances
Volume 16, Issue 1
May 2024
Pages 275-298

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History

  • Receive Date: 07 October 2023
  • Revise Date: 21 September 2024
  • Accept Date: 20 October 2024

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