The impact of audit committees on the relationship between stock overvaluation and earnings management

As is evident from the oversight of audit, management and decision-making committees, given the impact that auditors have on the transparency of the financial reporting environment, the reduction of information asymmetry and the value of the company, more on their investment opportunities and efficiency. Investments are planned and therefore can have a significant impact on the actual valuation of corporate stocks by investors. This study also examines the relationship between stock overvaluation and earnings management, the relationship between audit committees and earnings management and the role of audit committees on the relationship between stock overvaluation and earnings management using data panel model among 150 companies accepted in Tehran Stock Exchange pays in the period of 1391-1394. The results of testing the research hypotheses showed that the first hypothesis of the research was confirmed and in other words there is a significant relationship between stock overvaluation and earnings management and this effect is negative. Stock valuation is based on earnings management. Also, the second hypothesis of the research is confirmed and there is a significant relationship between the coefficient of the audit committee and profit management. Also, the coefficient of the effect of audit committees on the relationship between stock overvaluation and earnings management was significantly confirmed in the third hypothesis test, so that audit committees lead to a reduction in the effect of stock overvaluation on earnings management. Other results showed that in all three models, the positive effect of firm size and growth opportunities on profit management is significant and the negative effect of financial leverage on profit management is confirmed and with increasing the degree of financial leverage, the amount of profit management decreases.