Investigating the Effect of Internal Audit Quality on the Crisis of Cash Holding, Considering the Mediating Role of Market Competition Crises, Financial Constraints and Agency Costs

Since the quality of internal audit can guarantee the correctness and accuracy of the company's financial reporting, it will increase the trust of investors in the company, which will improve the management of the crisis of keeping cash due to the trust of investors and financiers. Therefore, the purpose of this research is to investigate the effect of internal audit quality on the crisis of cash holding, considering the mediating role of market competition crises, financial constraints and agency costs. In line with the purpose of the research, in terms of the result of its implementation, it is an applied research, from the perspective of the implementation process, quantitative, from the perspective of the implementation logic, analogical-inductive, from the perspective of the implementation goal, analytical-experimental, and from the perspective of the time dimension, a longitudinal-retrospective research. This research was conducted in the community of companies admitted to the Tehran Stock Exchange and its statistical sample included 110 companies admitted to the Tehran Stock Exchange between 2014 and 2021. Ordinary least squares regression model has been used to test research hypotheses. The results show that the quality of the company's internal audit has an effect on the crisis of cash retention, financial limitation and agency cost, while the quality of internal audit does not affect the product market competition, and also the market competition, agency cost and financial limitation will not be able to influence the quality of internal audit and The crisis of holding cash, play the role of a mediator. The present study simultaneously and for the first time investigated the effect of internal audit quality on the crisis of cash holding with regard to the mediating role of market competition crises, financial constraints and agency fees.