The effect of financial vulnerability on the timeliness of financial reports of companies accepted in the capital market of Iran

Subject Areas : Accounting

Seyed Hossein Ahmadi Langari ¹ , Ali Khozein ² , Alireza Matoufi ³ , Mansour Garkaz ⁴

1 - Department of Accounting, Gorgan Branch, Islamic Azad University, Gorgan, Iran.
2 - Department of Accounting, Aliabad Katoul Branch, Islamic Azad University, Aliabad Katul, Iran.
3 - Department of Accounting, Gorgan Branch, Islamic Azad University, Gorgan, Iran.
4 - Department of Accounting, Gorgan Branch, Islamic Azad University, Gorgan, Iran.

Received: 2024-01-30 Accepted : 2024-09-10 Published : 2025-03-19

Keywords: Accounting, Financial Reporting, Financial Vulnerability, Timeliness.,

Abstract :

 

Purpose: This study aims to investigate the impact of financial vulnerability on the timeliness of corporate financial reporting.

Methodology: The research population comprises companies listed on the Tehran Stock Exchange (TSE). This study is applied in terms of its objective and descriptive-correlational in terms of its methodology. Data were collected through a library-based approach over a six-year period from the beginning of 2017 to the end of 2022. Using a systematic elimination method and applying relevant screening criteria, a final sample of 152 firms was selected. To examine the relationship between financial vulnerability and financial reporting timeliness, regression models were developed and tested using linear and logistic regression techniques in EViews software.

Findings: The results indicate that financial vulnerability is significantly associated with the initiation and completion time of the financial reporting process. However, no significant relationship was found between financial vulnerability and late filing. The timeliness or delay in report submission, influenced by financial distress, affects compliance with statutory deadlines, although it does not necessarily lead to archival delays. Managerial decisions play a crucial role in mitigating financial vulnerability and enhancing the timeliness of financial disclosures.

Originality / Value: This study contributes to the literature by highlighting the role of regulatory frameworks and the application of the extended Z-Score model as a novel perspective on financial vulnerability and its implications for timely financial reporting. Through these two indicators, the study provides insights to support the informational needs of both internal and external decision-makers.

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