M.A. Thesis:

The relationship between accounting attributes and auditing attributes on crash risk of stock prices

Abstract From an information perspective, sources of risk should be reflected in accounting fundamentals. However, asymmetry in disclosure generated from a decrease in information flow to users of financial statements may lead to a stock price crash when the news is eventually disclosed.The present study examines the impact of a number of accounting and auditing attributes that have been found to improve reporting efficiency on the prediction of stock price crash risk.Some features, such as conservative accounting conditional, unconditional conservatism as well as some features such as audit insititute audit, the audit report on the risk of falling stock prices of listed companies in Tehran Stock Exchange for a period of 6 years (from 1388to1392) has been discussed. To measure risk falling stock price model Hutton et al (9003) have been used. The results show that there is a negative relationship between conservatism and conditional and unconditional conservatism on stock price crash risk. Also, audit firm size and type of audit report on stock price crash risk of listed companies in Tehran Stock Exchange have a negative impact. Taken together, the results imply that researchers should disentangle the effects of the two forms of conservatism when assessing the likelihood of a future stock price crash and that the beneficial role of conservatism in reducing stock-crash risk should be not overlooked.

Keywords: conditional conservatism- unconditional conservatism- Audit insititute size- type of Audit report