The Impact of Management Ability on Profit Information Content with Emphasis on Auditor Reputation

Profit and its information content are important for investors and shareholders to make the right decisions. The ability of managers is one of the factors that can affect the information content of profits. The present study examines the impact of management ability on earnings information content with emphasis on the auditor's reputation. This research is applied in terms of purpose and in terms of correlation methodology is causal (post-event) research. All companies listed on the Tehran Stock Exchange were the statistical population of the study. Using a series of restrictions, 121 companies were selected and surveyed over a period of 6 years between 1392 and 1397. The method used is data collection, library, and multiple linear regression is used to test the hypotheses. Statata software version 15 was used to perform the tests and final estimation of the models. After performing Limer and Hausmann F test and examining the heterogeneity of variance of the disturbing sentences, the final estimation of the models was performed. It is direct and meaningful, and the auditor's reputation strengthens the direct impact of management ability on earnings information content.