Examine the Influence of Auditor's Opinion from Institutional Ownership and Board Structure (Evidence from Tehran Stock Exchange)

Researchers have presented many documents in connection with the role of board characteristics on the quality of financial reporting. This study analyzes the quality of financial reporting and examines the possibility of receiving a qualified audit opinion with institutional ownership and board characteristics. The Method used in this study is quasi experimental with the post-test design in which experimental and control groups consist of 70 companies in Tehran Stock Exchange.The pair matching sampling was used and the study periods are from 2009 and 2010. Also, the Mann- Whitney, Kruskal-Wallis and T-test were used to test the hypotheses of the research. The research findings show that independence of board members and level of institutional ownership have positive and significant effect on the type of the auditor's opinion, but the number of board members and concentration on the institutional ownership have not affected the auditor's opinion. In other words, according to the results researchers might be able to claim that increase in board independence and increase in the level of institutional ownership reduce the possibility of issuing a qualified auditor's opinion but this proposition is not true in relation to the number of board members and institutional ownership concentration.