Investigating the relationship between audit quality and risk-taking in order to create company value

Stakeholders always need information that they can use to evaluate their decisions. Decisions must be made financially and from the perspective of the financial analyst in a way that creates value in the company. In any economic event, investors need reliable information to make decisions. From the investors' point of view, it is considered reliable information for an independent organization to oversee the corporate reporting process and the center of gravity of this process, ie the financial statements. In this regard, the purpose of this study is to investigate the effect of audit quality on risk-taking in order to create company value. For this purpose, a sample of 185 companies has been selected from the companies listed on the Tehran Stock Exchange during the years 2013 to 2018. To test the hypotheses, multivariate regression technique has been used by panel method. The criteria used to assess the quality of the audit are the five components of the auditor's expertise, the auditor's tenure, the size of the audit firm, the concentration of ownership, and the non-executive members of the board. The results show that all components used in relation to audit quality and risk factor have a significant effect on company value. Also, all components moderate the effect of risk-taking on value creation of the company.