Investigation the Effect of Asset Quality on the Relationship between Reporting Transparency and Competitiveness

Subject Areas : مدیریت

Alireza Heidarzadeh Hanzaei ¹ ( Assistant Professor, Department of Financial Management, North Tehran Branch, Islamic Azad University, Tehran, Iran )
Zahra KazemYosefkhani ² ( M.A., North Tehran Branch, Department of Business Management, Islamic Azad University, Tehran, Iran )
Esmaeil Ghafari ³ ( Assistant Professor, Department of Accounting, North Tehran Branch, Islamic Azad University, Tehran, Iran )

Received: 2020-10-18 Accepted : 2020-10-18 Published : 2019-02-20

Keywords: Competitiveness, asset quality, Reporting Transparency,

Abstract :

The aim of this study was to evaluate the role of reporting transparency in competitiveness of banks listed in Tehran stock and exchange. This study was a descriptive-correlation and an applied research. To measure the competitiveness of the Lerner index and the Bank's Bank Index, and to measure the transparency of financial reporting, four indicators of full disclosure of balance sheet information, disclosure of risk management plans, disclosure of the board's debts and disclosure of audit requirements have been used. The statistical population of research consists of all banks listed in Tehran Securities Exchange market during 2009/March/21 to 2015/March/20 that a number of 11 banks were active in this period. Data of research was extracted from financial reports of banks and analyzed by regression models in panel data method. Findings showed that there is a positive and significant relationship among reporting transparency and asset quality with the competitiveness. Also the findings indicated that the assets quality is effective on the relationship between reporting transparency and banks competitiveness.