Revisão do Jornal Árabe de Negócios e Gestão

Investigation the Effect of Income Smoothing and Auditor’s Opinion on the Financial Bankruptcy of Companies Listed in the Tehran Stock Exchange

Abstract

Fadaee M and Chashmi NA

The aim of study is to investigate the effect of income smoothing and auditor’s opinion on the financial bankruptcy of companies listed in Tehran stock exchange. In the analyses was used data of 70 companies listed in Tehran Stock Exchange in the period 2006 to 2013 and research hypotheses were analyzed with the help of statistical method of logistic regression. Significant variable coefficients and the model was confirmed in 95% confidence level. The research results showed that there is significant relationship between income smoothing and auditor’s opinion with financial bankruptcy of companies.