The Effect of Industry Type on the Relationship between Financial Reporting Transparency and Financial Health in Tehran Stock Exchange

الموضوعات :

Gholamreza Taherpour ¹ (Department of Accounting, Islamic Azad University, Aliabad Katoul Branch, Aliabad Katoul, Iran)
Ali Khozain ² (Department of Accounting, Islamic Azad University, Aliabad Katoul Branch, Aliabad Katoul, Iran)
Arash Naderian ³ (Department of Accounting, Islamic Azad University, Aliabad Katoul Branch, Aliabad Katoul, Iran)
Gemadverdi Gorganli Doji ⁴ (Department of Accounting, Islamic Azad University, Aliabad Katoul Branch, Aliabad Katoul, Iran)

تاريخ الإرسال : 27 الأربعاء , ذو الحجة, 1440 تاريخ التأكيد : 23 الإثنين , شوال, 1441 تاريخ الإصدار : 29 الجمعة , شعبان, 1443

الکلمات المفتاحية: Tehran Stock Exchange, Financial Reporting Transparency, Financial health,

ملخص المقالة :

This study aimed to evaluate the effect of industry type on the relationship between financial reporting transparency and financial health in companies listed in Tehran Stock Exchange. The statistical population included companies listed in Tehran Stock Exchange during 2005 to 2016. By systematic elimination, 79 companies from 5 industries were selected as statistical sample and were tested by composite regression of hypotheses. Results of significant coefficients test based on fitted regression equations indicated a significant positive relationship between financial reporting transparency and financial health. The moderating relationship of industry type was also confirmed on the relationship between financial reporting transparency and financial health. Hence, business continuity and profitability (financial health) will be greater by investing in companies that have greater financial reporting transparency. Thus, the relationship between financial reporting transparency and financial health is high in industries of automobile, auto part, basic metals, chemicals, cement, lime and plaster, and pharmaceuticals, respectively.

المصادر:

References

 

• Nielsen, C., Madsen, MT., Discourses of transparency in the intellectual capital reporting debate: Moving from generic reporting models to management defined information, Critical Perspectives on Accounting, 2009, 20(7), P. 847-54. Doi: 10.1016/j.cpa.2008.09.007

 

• Roberts, J., No one is perfect: The limits of transparency and an ethic for ‘intelligent’accountability, Accounting, Organizations and Society, 2009, 34(8), P.957-70. Doi: 10.1016/j.aos.2009.04.005

 

• Kordestani, G., and Alavi, M., The Effect of Accounting Profit Transparency on Equity Cost, Journal of Stock Exchange, 2011, 3(12). (In Persian).

 

• Bushman,R., Piotroski, J., and Smith, A.,What Determines Corporate Transparency? First draft, 2001.

 Doi: 10.2139/ssrn.428601

 

• Cheung, YL., Jiang, P., Tan, W., A transparency disclosure index measuring disclosures: Chinese listed companies, Journal of Accounting and Public Policy, 2010, 29(3), P. 259-80.

 Doi: 10.1016/j.jaccpubpol.2010.02.001

 

• Taqavi, M., Pourali, M., Investigation and Analysis of Financial Ratios in Detection of Different Levels of Financial Health of Iranian Manufacturing Units, Financial studies, 2010, 8.(In Persian).

 

• Clapper, D. L., U.S. Patent No. 6,623,080. Washington, DC: U.S. Patent and Trademark Office, 2003.

 

• Bushman, RM., Piotroski, JD., Smith, AJ., What determines corporate transparency? Journal of accounting research, 2004, 42(2), P. 207-52. Doi: 10.1111/j.1475-679x.2004.00136.x

 

• Sazilah, M.S., Syed, N.A., Kamaruzaman, J., Mazlifa, M., and Maisarah, A., Income Statements Transparency and Firms’ Characteristics of Companies Listed on the Bursa Malaysia, American Journal of Applied Sciences, 2009, 6(9), P. 1718-1724.(In Persian).

 

• Kolstad, I., Wiig, A., Is transparency the key to reducing corruption in resource-rich countries?World development, 2009, 37(3), P. 521-32. Doi: 10.1016/j.worlddev.2008.07.002

 

• Barth, M.E., Schipper, K., Financial reporting transparency, Journal of Accounting, Auditing and Finance, 2008, 23(2), P.173-190. Doi: 1177/0148558x0802300203

 

• Aksu, M., Kosedag, A., Transparency and disclosure scores and their determinants in the Istanbul Stock Exchange, Corporate Governance: An International Review, 2006, 14(4), P.277-96. Doi: 10.1111/j.1467-8683.2006.00507.x

 

• Agah, M., Malekpoor, H., Bagheri, A., Investigating the Effect of Financial Constraints and Different Levels of Agency Cost on Investment Efficiency. Advances in Mathematical Finance and Applications, 2017, 2(4), P. 31-47. Doi: 10.22034/amfa.2017.536264

 

• Brown, CA., Bacon, SP., Achieving electric-acoustic benefit with a modulated tone, Ear and hearing, 2009, 30(5), P. 489. Doi: 10.1097/aud.0b013e3181ab2b87

 

• Vishwanath, T., Kaufmann, D., Towards transparency in finance and governance, Available at SSRN 258978, 1999, Doi: 10.2139/ssrn.258978

 

• Kaufmann, D., and Bellver, A., Transparenting transparency: Initial empirics and policy applications, Available at SSRN 808664. 2005, Doi: 10.2139/ssrn.808664

 

• Kramer, P., and Bressan, P., Ignoring color in transparency perception, Rivista di estetica, 2010, 43, P. 147-159. Doi: 10.4000/estetica.1863

 

• Kritsonis, A., Assessing a firm’s future financial health, International Journal of Scholarey Academic Interlectual Diversity, 2005, 9(1), P. 2004-5.

 Doi: 10.1007/s12129-004-1044-z

 

• Pourali, M., Developing a measurement and evaluation model of financial health in environmental conditions of Iran, knowledge of investment, 2012, 2(5), P. 179-206.(In Persian).

 

• Yousefi Asl, F., Molanazari, M., Soleimani Amiri, G., Evaluation of the suggested financial reporting transparency model based on stock liquidity, Accounting knowledge, 2016, P. 113-136. (In Persian).

 

• Porter, M.E., Capital choices: Changing the way America invests in industry, Journal of Applied Corporate Finance, 1992, 5(2), P. 4-16. Doi: 10.1111/j.1745-6622.1992.tb00485.x

 

• Courtis, JK., Relationships between timeliness in corporate reporting and corporate attributes, Accounting and Business Research, 1976, 7(25), P. 45-56. Doi: 10.1080/00014788.1976.9729085


• Hemati, H., Kazemi, H., Rostami, Z., Effect of corporate governance system mechanisms on financial performance and information transparency, Applied research in financial reporting, 2013, 2(2), P.123-148. (In Persian).


• Izadikhah, M. Financial Assessment of Banks and Financial Institutes in Stock Exchange by Means of an Enhanced Two stage DEA Model. Advances in Mathematical Finance and Applications, 2021, 6(2), P. 207-232. Doi: 10.22034/amfa.2020.1910507.1491


• Izadinia, N., Fadavi, M.H., Amininia, M., Investigating the Effect of Accounting Complexity and Transparency of Company Financial Reporting on Delay in Auditor Reporting, Accounting knowledge, 2011, 54, P. 87-110. (In Persian).

 

• Kordestani, G., Majdi, Z., Investigating the Relationship between Qualitative Characteristics of Earnings and Cost of Equity, Accounting and auditing studies, 2010, 14(48), P. 85-104. (In Persian).

 

• Rahnamaye Roodposhti, F., Yaghubnejad, A., Nourifard, Y., Goudarzi, A., Evaluating the effect of disclosure of critical accounting procedures on performance appraisal criteria and financial reporting quality, Financial accounting studies, 2013, 5(2), P. 73-92. (In Persian).

 

• Pervan, I., Bartulović, M., Impact of transparency level on the value relevance of accounting information: empirical analysis for SEE countries, International Journal of Mathematical Models and Methods in Applied Sciences, 2012, 6(8), P. 955-62. Doi: 10.1080/1331677x.2014.947132

 

• Poordavoodi, A., Moazami Goudarzi, M.R., Haj Seyyed Javadi, H., Rahmani, A.M., Izadikhah, M., Toward a More Accurate Web Service Selection Using Modified Interval DEA Models with Undesirable Outputs, Computer Modeling in Engineering & Sciences, 2020, 123(2), P. 525-570, Doi: 32604/cmes.2020.08854

 

• Rezaei, N., Elmi, Z., Behavioral Finance Models and Behavioral Biases in Stock Price Forecasting. Advances in Mathematical Finance and Applications, 2018, 3(4), P. 67-82. Doi: 10.22034/amfa.2019.576127.1118

 

• Mashayekh, S., Nasiri, S., Effect of financial reporting transparency on relevance of accounting profit value, Empirical accounting studies, 2016, 5(3), 127-154. (In Persian).

 

• Newton, G. W., Bankruptcy and insolvenvy accounting, Practice and procedure, 2010, 1(7), P. 4-21.

 

• Francis, J., LaFond, R., Olsson, P.M., and Schipper, K., The market pricing of accruals quality, Journal of Accounting and Economics, 2005, 39, 295. Doi: 10.1016/j.jacceco.2004.06.003

 

• Biddle،, G., Hilary, G., Accounting Quality and Firm-Level Capital Investment, The Accounting Review, 2006, 81, P. 963-982.

 

• Verdi،, Financial Reporting Quality and Investment Efficiency, M.I.T. Working Paper, 2006.

Doi: 10.2139/ssrn.930922

 

• Teruel, P., Solano, J., Accruals quality and corporate cash holdings, Accounting and Finance, 2009, 49, P.95–115. Doi:10.1111/j.1467-629X.2008.00276.x