Investigating the relationship between information content of earning quality, dividend policy and audit services’ pricing

The present study aimed to investigate the relationship between information content of earning quality (in the form of manipulation and stability of earnings), dividend policy and audit services’ pricing in companies listed in the Stock Exchange. In general, the use of a sample of stock exchange companies during 2006 to 2014 indicates that contrary to expectations that there is a negative relationship between stability of earnings and audit fee in companies with dividends, stability of earnings has a positive effect on audit fee in companies with dividend. The results also show that the effect of earnings manipulation risk on audit fee for companies with dividend is lower. Although the effect of earnings manipulation risk on audit fee is seen positive, but its effect on audit fee in companies with dividend is seen significant and negative. The results of control variables affecting audit fee indicate that with the increase in company size and enlarging the size, the amount of audit fee in sample companies has increased. It is also found that audit fee in companies being audited by famous and great auditors has been more. Finally, the results showed that the companyʹs loss is a factor affecting the increase of audit fee.