Auditor’s Attributes and Cost of Capital in Iran Capital Market

Mohammad Hamed KhanMohammadi, Ali Akbar Arbabian, Tooran ShiriDoyj

Abstract


This research aims to examine the impact of audit quality (auditor’s quality evaluation, auditor size, auditor industry specialization, and auditor tenure) on Iran capital market.  The result of the analysis of 1140 years of the company during 2006-2015 has shown that there is a significant negative relationship between the auditor expertise and auditor tenure. Although the negative relationship between all of the criteria of audit quality and cost of capital is not confirmed, it cannot be claimed that high audit quality does not cause reduction in cost of capital in Iran capital market.

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References


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