Fox Index Reaction Versus Companies With the Possibility of Fraud Based on Content Analysis Methodologies: An Empirical test of Incomplete Revelation Hypothesis

Subject Areas : Financial Knowledge of Securities Analysis

vahid bekhradi nasab ¹

1 - department of accounting, Najaf Abad branch, Islamic Azad Univercity, Najaf Abad, Iran

Received: 2021-05-04 Accepted : 2021-05-04 Published : 2021-02-19

Keywords: Fox Index, fraud, Content Analysis Methodology, Incomplete Revelation Hypothes,

Abstract :

The Incomplete Revelation Hypothesis argues that some companies, for some reason, disclose the information incompletely, complexly, difficultly and rigorously. One of the reasons why disclosure of information is difficult is the existence of fraudulent financial reporting. Fraud encourages the director to disclose information in a complex way so that the minds of users of financial information go beyond anything other than fraud. The purpose of the present study is to investigate the Fox Index Reaction Versus Companies With the Possibility of Fraud. Fox Index is a benchmark for identifying the complexity of financial statements. The research methodology is based on a content analysis approach based on an incomplete Revelation hypothesis. The statistical population of the study consisted of all listed companies in Tehran Stock Exchange from 2009 to 2016. The sample size is based on the systematic elimination of 112 companies. The research hypothesis was tested using multiple regression model and parent test based on Panel data. According to the incomplete Revelation hypothesis, the research evidence suggests that companies with a high probability of fraud are more complicated financial reports with less readability than companies with a low likelihood of fraud Publish. The findings of the present study, while completing the gap, have been carried out in the field of concealing the opportunistic behavior of managers about the non-disclosure of financial information, can be used to increase potential investors, stock market organizations and other stakeholders. Accounting information is useful in decision making

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