The Relationship Between Information Technology Capacity and Reporting Quality in Companies Listed on the Tehran Stock Exchange

Subject Areas : Journal of Capital Market Analysis

Mozaffar jamalianpour ¹ , Melika Rezaei hanjani ²

1 - Department of Accounting, Faculty of Management and Accounting, Allameh Tabatabaei University, Tehran, Iran.
2 - Department of Accounting, Faculty of Management and Accounting, Allameh Tabatabaei University, Tehran, Iran.

Received: 2024-05-27 Accepted : 2024-09-06 Published : 2025-03-11

Keywords: Financial Reporting Quality, Earnings Quality, Software Capital Expenditures,

Abstract :

Abstract This research examines the relationship between software capital expenditures and the quality of financial reporting in companies. The statistical population of this research was all the companies admitted to the over-the-counter and Tehran Stock Exchange, after applying the research limitations, 156 companies were selected as a statistical sample. In order to prepare some variables, data from the period of 2012-2022 were used and the time period of hypothesis testing was defined as 2016-2021. The theoretical foundations of the research are gathered through library research and document analysis to explain the literature on the research topic. Code-based information from the Codal website is utilized to collect data related to research variables. The dependent variable in this study is the quality of financial reporting, measured by different criteria. The independent variable is software capital expenditures. Regression analysis using Eviews12 software is employed to analyze the research variables. The results indicate a significant and positive correlation between software capital expenditures and the quality of liability items, highlighting the importance of utilizing software technology in improving the accuracy and reliability of accounting information. Additionally, these expenditures are positively associated with profit stability and predictability, indicating their essential role in enhancing financial performance and predictability in various conditions. Furthermore, the positive correlation with earnings smoothness underscores the effective role of software technology in improving the financial reporting process. These findings emphasize the importance of optimizing and efficiently utilizing software technology in managing capital expenditures to enhance efficiency and transparency in business environments.

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