The effect of independent auditor's report on profit distribution policy: Evidence from Tehran Stock Exchange

Piri, P.; Gargaz, M.; Mirfendresky, M.; Aalizadeh, A.

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Management Science Letters

ISSN 1923-9343 (Online) - ISSN 1923-9335 (Print) Quarterly Publication Volume 4 Issue 7 pp. 1507-1510 , 2014

The effect of independent auditor's report on profit distribution policy: Evidence from Tehran Stock Exchange Pages 1507-1510 Download PDF

Authors: Parviz Piri, Mansour Gargaz, Mohhammad Tagi Mirfendresky, Abbas Aalizadeh

Keywords: Auditor Report, Dividend Policy, DPS, EPS, Tehran Stock Exchange

Abstract: Profit distribution is one of the most debatable subjects in financial field. Opposite theoretical models that sometimes, do not have a strong empirical support look for the explanation of corporate dividend policy. In this paper, the relationship between profit sharing policy and auditor's and managers’ expected profit is studied. The study gathers the necessary information of 99 firms listed on Tehran Stock Exchange over the period 2002-2011. The implementation of regression analysis shows that there was more explanatory power of auditors’ expected profit than managers’ expected profit in dividends. The results also show that there was no meaningful difference between auditors` expected profit and managers` expected profit.

How to cite this paper

 Piri, P., Gargaz, M., Mirfendresky, M & Aalizadeh, A. (2014). The effect of independent auditor's report on profit distribution policy: Evidence from Tehran Stock Exchange.Management Science Letters , 4(7), 1507-1510.

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