The Role of Accounting Information Quality and Audit Risk on the Relationship between Social trust and Stock Price Crash Risk of Banks

Ghasemi, Ali; Chabok, Amir Ehsan; Noruzzadegan, Ahmad; Hamidian, Mohsen

doi:10.22034/jifb.2024.433789.1547

The Role of Accounting Information Quality and Audit Risk on the Relationship between Social trust and Stock Price Crash Risk of Banks

Document Type : Original Article

Authors

Ali Ghasemi ¹

Amir Ehsan Chabok ²

Ahmad Noruzzadegan ³

Mohsen hamidian ⁴

¹ Department of Accounting, Takestan Institute of Higher Education, Qazvin, Iran.

² Department of Accounting, Hashtgerd Branch, Islamic Azad University, Hashtgerd, Iran.

³ Department of Accounting, Hashtgerd Branch, Islamic Azad University, Hashtgerd, Iran

⁴ Department of Accounting, South Tehran Branch, Islamic Azad University

https://doi.org/10.22034/jifb.2024.433789.1547

Abstract

The present study is based on investigating the role of accounting information quality and audit risk in adjusting the relationship between social trust and the risk of falling stock prices of banks. To this aim and in order to answer the proposed questions, the researchers extracted the financial information of 11 banks for a ten-year period from 2013 to 2022, analyzed the variables of the research, and performed the necessary statistical tests. The present research method is descriptive-correlational and its design is experimental, using a post-event approach. The findings indicated that there is a negative and significant relationship between social trust and the risk of falling stock prices. There is a negative and significant relationship between the quality of accounting information and the risk of falling stock prices. Moreover, there is a positive and significant relationship between the risk of audit information and the risk of falling stock prices. Furthermore, the quality of accounting information does not moderate the relationship between social trust and the risk of falling stock prices; the risk of audit information does not moderate the relationship between social trust and the risk of falling stock prices.

Keywords

Accounting Information Quality

Audit Risk

Social Trust

Stock Price Crash Risk