The Effect of Qualitative Audit on Reducing Bonds and the Role of Major Shareholders

The purpose of this study was to examine the effect of audit quality on the reduction of collateral facilities regarding the role of major shareholders in firms listed in the Tehran Stock Exchange during the period of 2009 to 2015. Having considered the research conditions, 90 companies were selected as the statistical sample to study (equals 630 firm - year). The research methodology is descriptive and it can be considered as a type of applied research in terms of nature and content. The panel data method was used to test the research hypotheses. The present research findings have shown that the quality of audit and expertise decreases the collateral facility in the firms listed in the Tehran Stock Exchange. However, the auditor's rotation does not have a significant impact on collateral facilities. On one hand, the percentage of ownership owned by major shareholders reinforces the relationship of the audit quality and expertise in the audit industry with collateral facilities. The percentage of ownership owned by major shareholders, on the other hand, does not significantly affect the relationship between the auditor's rotation and collateral facilities.