The Impact of Asset Structure and Management Characteristics on the Readability of Financial Statements in Companies Listed on the Tehran Stock Exchange

Subject Areas : Role of accounting in capital market efficiency and Informativeness

Samira Beiranvand ¹ , . . ² , Khadijeh Khodabakhshi Parijan ³

1 - -PhD.Condidate in Accounting, Department of Accounting , WT.C, Islamic Azad University, Tehran, Iran.
2 - PhD.Condidate in Accounting, Department of Accounting , WT.C, Islamic Azad University, Tehran, Iran.
3 -

Received: 2025-07-20 Accepted : 2025-09-22 Published : 2025-09-29

Keywords: Readability of financial statements, asset structure, management myopia, management narcissism,

Abstract :

Readable and transparent financial statements are a vital tool for informed decision-making by investors and other stakeholders in the capital market.Several factors affect the readability of these statements,the most important of which are the asset structure and management characteristics of the company.In the Tehran Stock Exchange considering the existence of companies with different asset structures and different levels of management quality, examining the impact of these factors on the readability of financial statements is of particular importance.This study can help investors better understand financial information and make more informed investment decisions.It can also help the stock exchange and other regulatory bodies identify companies that require more supervision.Therefore, the aim of this study was to investigate the effect of asset structure and management characteristics on the readability of financial statements in companies listed on the Tehran Stock Exchange.The statistical population of this study was all companies listed on the stock exchange in the period from 2018 to 2023.The statistical sample was selected by systematic elimination method with 141 companies. The statistical software used in this study was Eviews, 10th version.The research method was applied in terms of purpose and post-event in terms of data collection method. Data analysis was performed using the panel data technique.The results of the study showed that asset structure, which represents the proportion of fixed assets, leads to a decrease in the readability of financial statements. Also, management myopia and management narcissism had a significant effect on the readability of financial statements

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