A Study on the Effect of Audit Quality on Improvement of Stock Turnover Ratio or Mid-term Financial Information Quality of Listed Companies on Tehran Stock Exchange

This research tries to assess the effect of auditing and the quality of mid-term audit on the improvement of information quality and the stock turnover of the listed companies on stock exchange. A study conducted between 1388 to 1393 SH (2009-2014 AD) on a sample group of some listed companies revealed that there was no significant relationship between auditing or quality of the audit and the improvement of mid-term information quality; However conciseness of the mid-term audit could have attributed this result. Other findings of the research show that whether the published information about companies is audited or not can lead to reactions from shareholders and also affect the stock turnover ratio of the company. Results on the effect of audit quality on stock turnover ratio, shows no significant relationship between the audit quality criterions and stock turnover ratio after the issuance of the financial statements. Actually results indicate that “the fact that companies’ midterm financial statements have been audited is of a higher interest to the shareholders than the quality of the audit” and they have had more reactions towards the audit itself than its quality. Altogether these results show that even though there is a significant relationship between the audit and stock turnover ratio, the same cannot be said about quality of the audit and the turnover ratio.