The Effect of Financial Reporting Readability on Debt Capacity of Firms listed in Tehran Stock Exchange
الموضوعات : • Emerging technology in the field of Accounting and its future
Mohammad Imani Barandagh
1
,
leyla rezaei
2
,
milad rahimi
3
1 - Associate Professor, Department of Accounting, Zanjan branch, Zanjan, Iran
2 - M.A. of Accounting, Payam Noor University (PNU), Tehran, Iran
3 - Department of Accounting, Esfahan branch, Esfahan, Iran
الکلمات المفتاحية: Attracting Creditors' Trust, Capital Structure, Debt Capacity, Information Asymmetry, Financial Reporting Readability Criteria,
ملخص المقالة :
Objective: The purpose of this research is to track the effect of readability of financial reporting on debt capacity. Methodology: In order to achieve the objectives of the research, 123 companies listed in Tehran Stock Exchange (TSE) during the years 2016-2022 were selected by systematic elimination model. Multiple linear regression based on consolidated data was used for hypothesis testting. the fog index was used for evaluating of readability of financial reporting and also debt capacity was measured with model developed by Frank and Goyal (2009). Results: The finding showed positive and significant effect of readability of financial reporting on debt capacity. Innovation: This research develops theoretical foundations of previous research by providing empirical evidence of the consequences of language style and readability of financial reporting in emerging markets such as Iran. Keywords: Attracting Creditors' Trust, Capital Structure, Debt Capacity, Information Asymmetry, Financial Reporting Readability Criteria. JEL Classification: M41، H63
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