Purpose -The purpose of this paper is to investigate the relationship between cash holdings, investment opportunities and financial constraint with audit fees in Iran. Design/methodology/approach -In order to collect data, all manufacturing companies listed on the Tehran Stock Exchange are used to test the hypotheses during 2008-2015. Panel data and combined data regression model were used for data analysis. Tests were performed using R statistical software. Findings -The results obtained from the statistical analysis of research hypotheses indicated that there is a significant relationship between cash holdings and audit fees. Furthermore, the relationship between cash holdings, financial constraints and audit fees was significant. In addition, there was no significant relationship between cash holdings, investment opportunities and audit fees. Originality/value -The current study employed a unique topic in terms of a developing country, and the results may give strength to other developing nations.

Purpose-This study aims to investigate the impact of outside financing (equity and debt financing) on the quality of financial reporting in Iran. Design/methodology/approach-Sample includes the companies listed on the Tehran Stock Exchange-152 companies in a period of four years during 2010-2013. Data were analyzed by using multiple linear regressions with the benefits of the combined data. Findings-The results indicates that there is a positive relationship between the quality of financial reporting based on the qualitative characteristics of the theoretical principles of the Iranian Financial Accounting Standards Board and debt financing. Moreover, there is a negative relationship between the quality of financial reporting based on the Dechow and Dichev (2002) model and debt financing. Additionally, there is a negative relationship between the quality of financial reporting (based on the qualitative characteristics of the theoretical principles of the Iranian Financial Accounting Standards Board as well as the Dechow and Dichev models) and equity financing. Originality/value-Financial statements as the output of the accounting system has always been considered by the investors, the creditors and the government; nonetheless, its dependability in making decisions has always been doubted because of using the accrual principle in the calculation of the reported figure in the statements and, consequently, the possibility of being manipulated by the managers as well as the likelihood of conflict of interest among the managers and the shareholders.

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