Abnormal Audit Fees and Stock Price Synchronicity: Iranian Evidence

Mikaeil Mansouri Serenjianeh, Nasrollah Takhtaei

Abstract


The main objective of this research is to investigate the association between stock price synchronicity. Stock price synchronicity as a criterion for stock market reaction has been the subject of this study for the first time in Iran. For fulfilling the objectives of this research, the post event research method has been applied and for testing the hypothesis the data panel method has been employed. This research sample encompasses 71 accepted firms in Tehran stock market from 2006 to 2010. The results of this research indicate that stock market reaction positively to abnormal audit fees. In other words, the investors tend to assume that abnormal audit fees lead to more information of firm into stock prices and this will enhance audit quality.


Full Text:

PDF


DOI: http://dx.doi.org/10.5296/ajfa.v5i2.4132

Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.

To make sure that you can receive messages from us, please add the 'macrothink.org' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders.

Copyright © Macrothink Institute   ISSN 1946-052X