The effect of corporate governance on the relation between accounting information quality and correlation of company and industry’s growth rate

This article aims to investigate the effect of corporate governance on the relation between accounting information quality and correlation of company and industry growth rate for the companies listed in Tehran Stock Exchange. This research uses the variables earnings persistence, earnings smoothing, earnings predictability and accruals quality as proxy accounting information quality variable. Also, eight indices are used as proxy corporate governance mechanisms. the hypothesizes of the research are tested using a sample consisting of 111 of companies for a time period of 15 years from 2003 to 2016 and based on multiple variable regression model and panel data model. Eviews software were employed for calculation. The results indicate where the corporate governance is weak, then the role of the accounting information quality in investor’s decision making increases. Accounting information quality also better explains the correlation between company and industry’s growth rate where the corporate governance is weak.