The Relationship between Comparability of Financial Statements and Asymmetric Behavior of Costs with Considering the Moderating Role of Institutional Investors’ Ownership

Subject Areas : Corporate governance

Shirin Shahbazi Shirin Shahbazi ¹ , یونس بادآور نهندی ²

1 - Graduated from Master of Accounting, Non-Profit Higher Education Institute of Siraj, Tabriz, Iran
2 - دانشیارگروه حسابداری،واحد تبریز،دانشگاه آزاد اسلامی، تبریز، ایران،مدیر مسئول نشریه علمی پژوهشهای حسابداری و راهبری شرکتی

Received: 2023-06-10 Accepted : 2023-07-31 Published : 2023-05-22

Keywords: Comparability of Financial Statements, Asymmetric Cost Behavior, Ownership of Institutional Investors,

Abstract :

The asymmetric behavior of costs is one of the phenomena that originates from the conflict of interests between managers and owners. The ability to compare financial statements by determining the level of coordination between the accounting procedures of different companies makes the information environment transparent and provides the possibility of correct evaluation of performance and optimal allocation of resources. Institutional owners, as one of the pillars of the corporate governance system, play an important role in monitoring management. Based on this, the current research examines the relationship between the comparability of financial statements and the asymmetric behavior of costs with considering the moderating role of institutional investors’ ownership. The statistical population of the research include the companies admitted to the Tehran Stock Exchange for the years since 2013 to 2020, and 139 Firms were selected as a statistical sample using the systematic elimination method. The research method is post-event and the data analysis method is multivariate linear regression. The results of the research showed that, there is a negative relationship between comparability of financial statements and asymmetric behavior of costs. Also, ownership of institutional investors exacerbates the negative relationship between comparability of financial statements and asymmetric behavior of costs. Therefore, the comparability of financial statements and the ownership of institutional investors play a complementary role in reducing the negative consequences of conflicts of interest between managers and owners and providing the goal of optimal use of resources.