The Effect of Information Risk on Relationship between Financial Reporting Quality and the Horizon of Short-term and Long-Term Institutional Investors
زهرا هوشمند
1
(
)
Keywords: information risk, financial reporting quality, the horizon of short-term institutional investors, horizon of long-term institutional investors.,
Abstract :
Purpose – The current study investigates the effect of information risk on the relationship between financial reporting quality and the horizon of short-term and long-term institutional investors in Iran. Design/Methodology/Approach – For this study, four hypotheses and 132 firms are selected via systematic elimination for eight years between 2012 and 2019. Data related to variables were analyzed using the Eviews Statistical Software. Findings- The obtained results show that financial reporting quality has an inverse and significant association with short-term institutional ownership. Moreover, the institutional owners also have a direct relationship with a long horizon, so the first and second hypotheses are accepted. The third hypothesis results show that information risk modifies the relationship between financial reporting quality and short-term institutional owners negatively. Hypothesis four reveals that information risk positively adjusts the relationship between financial reporting quality and long-term institutional owners. Originality/value- The study's topic can attract investors' attention, which shows the study's innovation. The investors have always been thinking about the impact of long-term or short-term horizon on reporting and information risk quality. Keywords: information risk, financial reporting quality, the horizon of short-term institutional investors, horizon of long-term institutional investors.
