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:: year 16, Issue 64 (2024) ::
fa 2024, 16(64): 115-133 Back to browse issues page
The Impact of Audit Quality on the Relationship between Risk Management and Firm Performance in Tehran Stock Exchange
Mohammad Javad Zare Bahnamiri *1 , Fatemeh Talkhabi2 , Ahmad Ardalan3
1- Department of Accounting, Faculty of Economics and Administrative Sciences, University of Qom, Qom, Iran.
2- Department of Accounting, Tolou-e Mehr University, Qom, Iran.
3- Faculty of Management and Accounting, Tolou-e Mehr University, Qom, Qom, Iran.
Abstract:   (75 Views)

Measuring firm performance is one of the most critical financial concerns for companies. Implementing a comprehensive risk management and control system can significantly improve managerial effectiveness, enhance value creation, and support strategic decision-making. Furthermore, high-quality audits—through effective risk assessment—can assist firms in developing appropriate risk management strategies, thereby improving overall performance. This study examines the impact of audit quality on the relationship between risk management and firm performance in the Tehran Stock Exchange. The analysis is based on 141 listed firms over the period 2014 to 2022, comprising 1269 firm-year observations. Firm performance is evaluated using two key indicators: firm value (Tobin's Q) and profitability (ROA). The findings, derived from multiple regression analysis, reveal that risk management has a significant positive effect on both firm value and profitability. Moreover, audit quality exhibits a moderating role: financial statement restatements weaken the relationship between risk management and firm performance, whereas audit fees strengthen it. These results confirm both hypotheses of the study and highlight the dual role of audit quality in influencing corporate performance through effective risk.
 

Article number: 6
Keywords: Risk Management, Firm Performance, Audit Quality.
Full-Text [PDF 842 kb]   (39 Downloads)    
Type of Study: Research | Subject: Special
References
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Zare Bahnamiri M J, Talkhabi F, Ardalan A. The Impact of Audit Quality on the Relationship between Risk Management and Firm Performance in Tehran Stock Exchange. fa 2024; 16 (64) : 6
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year 16, Issue 64 (2024) Back to browse issues page
فصلنامه حسابداری مالی Quarterly Financial Accounting
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