financial reporting quality

Open Access Article

1 - Audit Fee and the Basis of its Determination and Reasons for Dumping in Iran and the Effect of that on Financial Reporting Quality
Shahram Chahrmahali Roya Darabi Abolfazl Gharani Hassan Chenari

Objective: This study investigates the audit fee and the basis for determining that and the reasons for dumping in Iran and the impact of dumping on the quality of financial reporting.

Objective: This study investigates the audit fee and the basis for determining that and the reasons for dumping in Iran and the impact of dumping on the quality of financial reporting. Manuscript profile

Open Access Article

2 - Analyzing the Impact of Debt Maturity and Financial Reporting Quality on Under-Over Investment
Mohammad Hassani Maryam Meisami

This research analyzed the impact of debt maturity and financial reporting quality on under-over investment. Investment inefficiency (under-over) is measured based on the model presented by Biddle et al (2009) and financial reporting quality is measured based on the mod More

This research analyzed the impact of debt maturity and financial reporting quality on under-over investment. Investment inefficiency (under-over) is measured based on the model presented by Biddle et al (2009) and financial reporting quality is measured based on the model presented by Dechow & Dichev (2002). The research sample includes 219 companies listed in Tehran Securities and Exchange over the period 2010 - 2014. Results showed that financial reporting quality and short debt maturity have significant and negative impact on Investment inefficiency. These analyzing also have done in two categories such as over investment observations and under investment observations. Results suggested that financial reporting quality has significantly negative impact on over investment, but no impact on under investment. Short term debt maturity has no significant impact on over investment and under investment. Other results showed operational cash flow, tangibility and volatility in operational cash flow have significant and positive impact on over investment; sales volatility has significant and negative impact on over investment. But age, growth opportunity, loss and size have no significant impact on over investment. Also, size has significant and positive impact on under investment; growth opportunity and tangibility have significant and negative impact on under investment. But age, operational cash flow, loss, sales volatility and volatility in operational cash flow have no significant impact on under investment Manuscript profile

Open Access Article

3 - Investigation Effect of Financial Reporting Quality on Impact of Dividend on Investment Decisions
Mahdi Arabsalehi Ahmad Googerdchian Majid Hashemi

In recent years, dividend policy, as a factor of influencing decision investment, drawlots of attention in financial literature. Many economic decisions are made based oninformation, which is taken from the accounting information systems. Due to the qualityof informatio More

In recent years, dividend policy, as a factor of influencing decision investment, drawlots of attention in financial literature. Many economic decisions are made based oninformation, which is taken from the accounting information systems. Due to the qualityof information provided to users is necessary and increasing quality of data can be moreefficient investment copmanneis and to maintain and develop their resousces. The aim ofthis study is the investigation effect of financial reporting quality on impact of dividendon investment decisions. Then, the impact of financial reporting quality on thisrelationship has been investigated. Also for evaluating the financial reporting quality, theworking capital accruals quality model was used. Target sample includes 109 of listedcompanies in Tehran Stock Exchange(TSE) during 1385-1391.To analyze the data andhypothesis testing a multiple regression model based on compound data was used. Theresults of the study show that dividend have negative and significant effect on investmentdecisions. Also financial reporting quality mitigates the impact of dividend on investmentdecisions Manuscript profile

Open Access Article

4 - To Survey the Relationship between Financial Reporting Quality & Investment Efficiency in Tehran Stock Exchange
Mohammad Khodaei Valahzaghard Monireh Yahyaei

In this study the Relationship between Financial Reporting Quality and InvestmentEfficiency in the 210 affiliated companies in Tehran Stock Exchange, between theyears 2005 to 2009 has been examined. It is assumed that increasing the Quality ofFinancial Reporting can imp More

In this study the Relationship between Financial Reporting Quality and InvestmentEfficiency in the 210 affiliated companies in Tehran Stock Exchange, between theyears 2005 to 2009 has been examined. It is assumed that increasing the Quality ofFinancial Reporting can improve Investment Efficiency. But, there has been littleempirical evidence to supporting this claim to date. In order to compare this claim anegative Relationship between Quality of Financial Reporting and Lack of Efficiencyof Investment is found. Under investment and Overinvestment both are examples ofthe inefficiency of investment. The results show that a negative andsignificant relationship exists between the Quality of Financial Reporting and theUnderinvestment. Also the Relationship between the Quality of Financial Reportingand Overinvestment is negative, but not significant Manuscript profile

Open Access Article

5 - The Effect of Accounting Standards on Financial Reporting Quality in the Companies Listed In Tehran Stock Exchanges
H.R. Vakili fard M. Aliakbari

We know the aim of accounting is preparing usefulness information for users of financial statements for their decision making. So it is be necessary to have pre-determined regulation that be applied by accountants and managers. This regulation called “standards&rd More

We know the aim of accounting is preparing usefulness information for users of financial statements for their decision making. So it is be necessary to have pre-determined regulation that be applied by accountants and managers. This regulation called “standards”. In this investigation we test two index of financial repotting quality, Financial Statement Quality and Conservatism index with t-double test. We test 67 firm’s data in two periods.  Pre-determined of standards collection in Iran (76-80) and post determined of it (80-86). Our findings show that there is no differences between the means of Financial Statement quality index and Conservatism index in before and after of collection standards. Manuscript profile

Open Access Article

6 - Meta-analysis of Audit Committee Independence and Financial Reporting Quality
Ameneh Bazrafshan Rezvan Hejazi Ali Rahmani Susan Bastani

The purpose of this paper is Meta-analysis of audit Committee independence and financial reporting quality. In spite of general expectation for positive relationship between audit committee independence and financial reporting quality, the empirical researches reveal se More

The purpose of this paper is Meta-analysis of audit Committee independence and financial reporting quality. In spite of general expectation for positive relationship between audit committee independence and financial reporting quality, the empirical researches reveal several inconsistence conclusions. So, we conduct a meta-analysis of the association between audit independence and financial reporting quality in period of year 2000 to 2013. Although we cannot reliably aggregate results across studies in a statistical sense because of inconsistencies in defining FRQ and the absence of replication studies, quantitative review techniques after considering homogeneity analysis (by within-group Q and between-group Q) yield three conclusions: first the use of different FRQ measures in the AC independence literature explains the variation in results across studies. Second there is no relationship between audit committee independence and “earnings management and quality score”. Third there is positive relationship between audit committee independence and “accrual quality, abnormal return, restatement and fraud”. Manuscript profile

Open Access Article

7 - The Study of financial reporting quality ،debt maturity, and investment efficiency in Listed Firms at Tehran Stock Exchange (TSE)
Ahmad Ghodarzi Hani Babazadeh Shirvan

This study examines the relationship between financial reporting quality and debt maturity of investment efficiency in listed companies in Tehran Stock Exchange. The population of this study Consist of 99 companies listed in Tehran Stock Exchange which examined in the p More

This study examines the relationship between financial reporting quality and debt maturity of investment efficiency in listed companies in Tehran Stock Exchange. The population of this study Consist of 99 companies listed in Tehran Stock Exchange which examined in the period 1385 to 1392.Two indicators used in order to measure the investment performance asnoncurent assets and changes in long -term investments, and for quality of financial reporting indicator, quality of working capital accruals are used as a substitute. For debt maturity structure, Long-term debt to total debt ratio is considered as representative of maturity structure. The results showed a significant correlation between the quality of financial statements and performance of investment, but in Tehran Stock Exchange between debt maturity and investment efficiency is inversely related. Manuscript profile

Open Access Article

8 - Presenting and explaining a model to create the value of the company according to the role of accounting standards management, financial reporting quality and audit quality using meta-innovative models
saman khorshid yahya kamyabi mehdi khalilpour

In the world of investment, decision making is the most important part of the investment process, in which investors need to make the most optimal decisions in order to achieve their maximum benefits and wealth. In this regard, the most important factor in the decision- More

In the world of investment, decision making is the most important part of the investment process, in which investors need to make the most optimal decisions in order to achieve their maximum benefits and wealth. In this regard, the most important factor in the decision-making process is information. Information can have a significant impact on the decision-making process. Because it makes different decisions in different people. In the stock market, investment decisions are also affected by information. Therefore, this study seeks to provide and explain a model to create the value of the company according to the role of management of accounting standards, financial reporting quality and audit quality using meta-innovative models. To achieve this goal, the data of 101 companies listed on the Tehran Stock Exchange during the period 1392 to 1397 were collected, and the optimized algorithm method was used to analyze the data. The research findings indicate that all three meta-functional methods have the power to estimate economic value added and market value added. However, the estimated value of economic value added and market value added in the night cream algorithm is higher than the two decision tree algorithms and the regression machine-supporting algorithm algorithm. Is higher. Manuscript profile

Open Access Article

9 - Testing information content influenced by investors Sentiment Behavior and Financial Reporting Quality
shahnaz alinejad Fraydoon Rahnamay Roodposhti farzin rezaei

Purpose of the present study is to understand the relationship between investors sentiment behavior and financial reporting quality with the information content of financial statements of listed companies in Tehran Stock Exchange. The data of 110 companies were collecte More

Purpose of the present study is to understand the relationship between investors sentiment behavior and financial reporting quality with the information content of financial statements of listed companies in Tehran Stock Exchange. The data of 110 companies were collected from the databases of the Iranian Stock Exchange during the years 2009-2019 and analyzed in three stages using ANOVA- FRIEDMAN- OLS methods. In this study, the criteria for measuring the quality of financial reporting are the method of Jones, Dechow and Ball.From the OLS test results, it can be concluded that the information content determination coefficient has the highest value when the investors sentiment behavior is high and the financial reporting quality of the Jones model is average and it can also be stated that according to the test results ANOVA only in the model of financial reporting quality of Jones has the sentiment behavior of investors and the quality of financial reporting has an increasing impact on information content. The results of Friedman test also showed that there was a significant difference between different groups of investors sentiment behavior and financial reporting quality of Jones, Ball and Dechow. Manuscript profile

Open Access Article

10 - Financial Reporting Quality, Investment Horizon، and Institutional Investor Trading Strategies
Hamidreza Mehravar negar khosravipour zahra Lashgari

Frequent changes in the balance between trading strategies based on existing conditions are very useful. It is necessary to be sure of the optimal combination of strategies used at regular intervals, Therefore, the purpose of this study is to investigate the quality of More

Frequent changes in the balance between trading strategies based on existing conditions are very useful. It is necessary to be sure of the optimal combination of strategies used at regular intervals, Therefore, the purpose of this study is to investigate the quality of financial reporting, investment horizon and trading strategy of institutional investors of companies listed on the Tehran Stock Exchange. This research has been conducted in 135 companies listed on the Tehran Stock Exchange that have been selected based on the systematic elimination method. Also, this research has been done based on the information contained in the financial reports of companies in the period of 2009 to 2018. The method used is regression based on panel data. The results of the study regression model showed that the quality of financial reporting has a significant and positive effect on the relationship between short-term (long-term) institutional investors' horizons and trading strategy. In addition, the research findings indicate that the quality of financial reporting has a greater impact on the relationship between long-term institutional investors and trading strategy than short-term institutional investors. The results showed that when institutional investors have a long-term investment outlook and a low turnover, they have sufficient incentive to encourage managers to improve the quality of financial reporting and disclosure and to monitor managers' behavior. But short-term institutional shareholders are temporary investors who pay more attention to current earnings in determining stock prices, Manuscript profile

Open Access Article

11 - The Best Pattern of financial reporting quality in Iran from the viewpoint of investors and others interested groups
mirhafez amirazad Rasoul Baradaran Hasanzadeh ahmad mohamadi Houshang Taghizadeh

The purpose of this study is determining of the Best Pattern for financial reporting quality from the viewpoint of interested groups. in this research the variables affecting the financial reporting quality, which are extracted by interviewing experts from different gro More

The purpose of this study is determining of the Best Pattern for financial reporting quality from the viewpoint of interested groups. in this research the variables affecting the financial reporting quality, which are extracted by interviewing experts from different groups (suppliers, auditors, users and researchers) by Grounded Theory, are based on three well-applied indicators of financial reporting quality assessment based on the modified Jones model. (1995), Modified Dechow and Dichey model(2002) and Francis et al. model (2005)fitted.through multi-variable regression fitting on a sample of 120 companies listed in Tehran Stock Exchange are examined.Which variables in the various groups can good explain the quality of financial reporting. Given that the main focus of financial reporting is to provide quality financial reports to entities. So that it can be useful in economic decision making.The preparation of high quality financial reports is important because it can have a positive impact on the decisions made by equity providers and other stakeholders regarding investment, accreditation and other similar allocation decisions.And thereby enhance the overall efficiency of the capital market.Although the FASB and IASB emphasize the importance of quality financial reporting, one of the key problems in prior literature is how to operate and measure this quality. empirical evaluation of financial reporting quality inevitably involves preferences among a large number of components.Since different user groups will have different preferences, so will their perceptions of the quality of these components be different Manuscript profile

Open Access Article

12 - The Influence of Ownership of Investment Company on Financial Reporting Quality: A Test of Efficient Monitoring Hypothesis
Mozhgan Saeedi hashem nikomaram Ahmad Yaghoobnezhad

In the economic environment of the country, government-affiliated organizations and companies, acquire the ownership of many joint stock companies in the stock exchange by creating investment companies. The increasing presence of institutional and legal investors in the More

In the economic environment of the country, government-affiliated organizations and companies, acquire the ownership of many joint stock companies in the stock exchange by creating investment companies. The increasing presence of institutional and legal investors in the circle of company owners is an effect that the active presence of this group has on the way governance of organizations as well as their performance. The main purpose of this empirical research is to determine the impact of ownership of investment companies on the Financial Reporting Quality with emphasis on Efficient Monitoring theory. To measure the Financial Reporting Quality, the indicators of quality of disclosure, quality of accruals, earnings management of accruals, real earnings management and earnings management of real items have been used. The statistical population of this research is companies listed on the Tehran Stock Exchange. The data studied in this research include 1250 years-Firm from 2007 to 2018. The research method is correlational and post-event and the method of hypothesis testing is correlation and regression testing. Specific results of testing research hypotheses show that the ownership of investment companies and the concentration of ownership of investment companies have a significant effect on the Financial Reporting Quality. Manuscript profile

Open Access Article

13 - A model of the Quality of Financial Reporting based on the Structural Factors and Efficiency of Companies According to the Role of the Supervisory Committee
hajiebrahim nakhaei mohammadhossein ranjbar alireza momeni hossein badiei

10.30495/jik.2024.23253

This research has been conducted with the aim of providing a model of the quality of financial reporting based on the structural factors and efficiency of the companies according to the role of the supervisory committee in the companies admitted to the Tehran Stock Exch More

This research has been conducted with the aim of providing a model of the quality of financial reporting based on the structural factors and efficiency of the companies according to the role of the supervisory committee in the companies admitted to the Tehran Stock Exchange during the period of 2022. Considering the unlimitedness of the statistical population, in order to select the sample size, 291 managers, employees and experts in the field of finance and accounting were selected.Data collection tool in this research is a questionnaire. Findings regarding the first hypothesis showed that causal conditions with the mediating role of the central category of financial reporting quality have a direct and significant effect on the strategy.Result of the second hypothesis revealed that the central category of financial reporting quality with the mediating role of strategy has a direct and significant effect on the outcome.Result of the third hypothesis indicated that the causal conditions with the mediating role of the focus category of financial reporting quality and strategy have a direct and significant effect on the outcome.Result of the fourth hypothesis indicated that the background conditions with the mediating role of the strategy have a direct and significant effect on the outcome.Result of the fifth hypothesis show that the intervening conditions with the mediating role of the strategy have a direct and significant effect on the outcome.After checking and confirming the structural model, the SRMR index was also reported to be less than 0.10 and finally, the model was also confirmed. Manuscript profile

Open Access Article

14 - The Effect of Internal Quality Control on the Relationship between Financial Reporting Quality and Mass Behavior in Investors
Zeinab Rezaei Ali Tamoradi

The purpose of the present study is to review the effect of internal quality control (IQC) on the relationship between financial reporting quality and mass behavior of the accepted corporations' investors in Tehran Stock Exchange. The method of study was descriptive-ana More

The purpose of the present study is to review the effect of internal quality control (IQC) on the relationship between financial reporting quality and mass behavior of the accepted corporations' investors in Tehran Stock Exchange. The method of study was descriptive-analytic which used the statistical software of EViews 10 for data analysis. In this research, 150 corporations (1050 years of participation) were chosen for the research hypothesis testing from 2013 to 2020. For the research hypothesis testing, multi-vitiate regression models with panel data were used. The results showed that financial reporting quality has a significant effect on the mass behavior of the accepted corporations' investors in Tehran Stock Exchange. Moreover, IQC increases the negative correlation between financial reporting quality and mass behavior of the accepted corporations' investors in Tehran Stock Exchange. According to the research results, it can be asserted that besides financial and nonfinancial factors, the investors should pay attention to the role of financial reporting quality as an important criterion in decision making. Furthermore, the board of directors and audit committee members in corporations can take steps to increase financial reporting quality and decrease the investors' mass behavior through consistent and accurate evaluation and supervision over the process of internal control. Manuscript profile

Open Access Article

15 - Comparability of accounting, quality of financial reporting and pricing of accruals
Seyed Hadi Ejazi Hossein Ezadi Hamid Sajadi

Manuscript profile

Open Access Article

16 - Evaluation the Effect of life Cycle, Growth Option and Financial Reporting Quality in Mitigating the Constraining Effects of Dividend on Investment Decisions
Ali Naderi Mohsen Dastgir Farzad Karimi

In full capital market there is no relationship between dividend policy and investment decisions. However, frictions of capital market result in the appearance of negative effect of dividend on investment decisions. On way to modify this negative effect is qualified fin More

In full capital market there is no relationship between dividend policy and investment decisions. However, frictions of capital market result in the appearance of negative effect of dividend on investment decisions. On way to modify this negative effect is qualified financial reporting. This modifying effect is more prominent among adolescent firms and firms with high level of investment opportunities. Therefore, the final goal of this research is to investigate modifying effect of life cycle (adolescent firms) and growth opportunities on the negative relationship between dividend and investment decisions.Four hypotheses are considered for answering the above goal. In this way a sample consist of 105 firms listed in Tehran stock exchange were selected to test hypotheses. For estimating regression models, combined data were used during 1390 to 1398. The findings show that dividend has negative effect on the level of firm investment and this effect can be modified by high level of financial reporting quality. This modification effect is more prominent among adolescent firms and firms with high level of investment opportunities. According to these findings, the modifying effect of life cycle and growth opportunities on the modifying effect of financial reporting quality are confirmed empirically. Manuscript profile

Open Access Article

17 - Investigating the Relationship Between Emotional Intelligence Components and Financial Reporting Quality in Tehran Stock Exchange
Hassan Ahmadi Hashem Valipour QolamReza Jamali

Accountants have a critical and difficult responsibility for dealing with transactions and presenting them in the form of financial reports for use by interest groups in order to assess the performance of companies, so providing poorly-quality information will discourag More

Accountants have a critical and difficult responsibility for dealing with transactions and presenting them in the form of financial reports for use by interest groups in order to assess the performance of companies, so providing poorly-quality information will discourage public confidence in accountants. In this research, the relationship between emotional intelligence components and financial reporting quality has been studied. Therefore, the effect of each of these components on the improvement of financial reporting quality was assessed. The instruments used in this research were Shering's Emotional Intelligence Questionnaire (Independent Variable) and Financial Statements of Tehran Stock Exchange Companies during the period of 1391 to 1395 to test the financial reporting quality (dependent variable). The results of this study indicate that the components of emotional intelligence (including self-awareness, self-regulation, self-motivation, empathy skills, social skills) have a positive and significant effect on the financial reporting quality, so that for a unit of change in each component Emotional intelligence leads to significant changes in the quality of financial reporting. Manuscript profile

Open Access Article

18 - Relationship between Business Intelligence Components and Financial Reporting Quality in Firms
Hassan Ahmadi Hashem Valipour Gholamreza Jamali

10.22094/joie.2020.575354.1585

Manuscript profile

Open Access Article

19 - Explaining and Developing a Model for Determination and Evaluation of Factors that Affect Financial Reporting Quality Choice in Iran
Hashem Nikoomaram Younes Badavar Nahandi

This research has determined and evaluated the factors that affect financial reporting quality choice in Iran. The statistical popultion of this research is companies listed in Tehran Stock Exchange (TSE), and the research period is from 1378 to 1385. This research&nbsp More

This research has determined and evaluated the factors that affect financial reporting quality choice in Iran. The statistical popultion of this research is companies listed in Tehran Stock Exchange (TSE), and the research period is from 1378 to 1385. This research                is considered as an empirical accounting research, and causal-comparative and correlation research methods have been used to do it. In this research, correlation test, mean-difference test, and probit regression model have been used to analyze the data and test the hypotheses. The results of unit-variable tests of hypotheses shows that, financial reporting quality is positively associated with the margin of profitability and managerial efficiency of the firm, and it is negatively associated with product market competition, managerial conservatism, size, capital intensity of business, operating cycle and complexity of the firm's operating environment. However, no association was found between financial reporting quality and growth opportunities, ownership concentration, board of directors structure, board of directors ownership, managerial integrity and financial leverage of the firm. Also, based on multi-variable tests, models were developed to predict the financial reporting quality of firms for the next financial period. These models are based on cumulative distribution function (CDF), and estimate the probability of high quality financial reporting for the next financial period. Manuscript profile

Open Access Article

20 - The Relationship between Managerial talent, Investment Efficiency and Stock Price Crash Risk
Bita Moazen Yunes Bad Avar Nahandi

The aim of the present study was to investigate the relationship between managerial talent, investment efficiency, and also, the management ability interaction and financial reporting quality with stock price crash risk.  To this end, the data from 124 companies ac More

The aim of the present study was to investigate the relationship between managerial talent, investment efficiency, and also, the management ability interaction and financial reporting quality with stock price crash risk.  To this end, the data from 124 companies accepted on the Stock Exchange in Tehran were used for a span of five years (2009-2014). To measure managarial talnet, Demirchian & et al. (2012) model, which was based on accounting variables; Chen & et al. (2011) model, to measure investment efficiency; Kothari & et al. (2005) model, to measure financial reporting quality; Chen & et al. (2001) model, to measure stock price crash risk were used. To test the hypotheses, the multiple regression statistics was used.  The results confirmed the theory of rent extraction and showed that firms with more talented managers making inefficient investment decisions. these firms, take opportunistic approach and manupulate financial reports  in  order  to  hid  bad  news  to increase stock price crash risk. Manuscript profile

Open Access Article

21 - The relationship between forensic accounting indicators and the quality of financial reporting
Mohammad Reza Borna Rasoul baradaran Hasanzadeh Alireza Fazlzadeh Yones badavarnahandi

Fraud is one of the effective factors in reducing public trust in reports and financial statements prepared by companies. Due to the lack of fraud auditing in Iran's environmental conditions and the lack of acceptance of this responsibility by auditors as the main super More

Fraud is one of the effective factors in reducing public trust in reports and financial statements prepared by companies. Due to the lack of fraud auditing in Iran's environmental conditions and the lack of acceptance of this responsibility by auditors as the main supervisors of companies' financial information, users are always faced with problems in verifying the validity of financial statements and the quality of financial reporting. In this regard, the present study was conducted with the aim of examining the relationship between court accounting indicators and the quality of financial reporting in the environmental conditions of Iran. The statistical population of the research includes 130 companies that were selected through systematic sampling during the years 2011 to 2022. The quality of financial reporting was measured as a dependent variable using four Jones, modified Jones, Kasznik and Kothari models. Court accounting indicators were evaluated as an independent research variable based on the fraud prediction model of Boarna et al (2022). The results showed; Forensic accounting indicators in Kasznik model have 66% of the power to explain the quality of financial reporting, while in Jones, Kothari and adjusted Jones models, they are equal to 50, 56 and 30%, respectively. Manuscript profile

Open Access Article

22 - Paradigm model of factors affecting the quality of financial reporting in Bidboland Gas Refining Company
Seyed Ali Sedighipour Allah Karam Salehi

The financial reporting quality is one of the most important topics in accounting research that has been evaluated from both academic and experimental aspects. In this paper, using grounded theory and semi-structured interviews with 11 board of directors and senior fina More

The financial reporting quality is one of the most important topics in accounting research that has been evaluated from both academic and experimental aspects. In this paper, using grounded theory and semi-structured interviews with 11 board of directors and senior financial managers in 2021, an attempt has been made to design a conceptual model of financial reporting quality of Bidboland Gas Refining Company. Research data were analyzed using open coding method and final concepts were extracted. According to the interviews, through linking causal, contextual and intervening conditions as input factors and strategies and consequences as output factors, the conceptual model have been identified and reported. According to the extracted paradigm model, the most important causal conditions affecting the quality of financial reporting include corporate governance, quality of disclosure, accounting information system and financial knowledge and expertise. Also, to achieve the better quality of financial reporting, strategies such as financial transparency, the establishment of internal control system and the implementation of operational auditing should be adopted. The research model showed that the quality of financial reporting can have consequences such as increasing efficiency and improve performance, costs saving, reducing information asymmetry and the financial report’s reliability. Manuscript profile

Open Access Article

23 - The effect of financial report quality, managerial ownership and research and development investment on audit report delay
Seyed hossein Ahmadi Langari

The purpose of this research is to determine the factors of interest to the users of financial information through the timely presentation of the auditor's report, which has a significant contribution in influencing the success of the financial performance and developme More

The purpose of this research is to determine the factors of interest to the users of financial information through the timely presentation of the auditor's report, which has a significant contribution in influencing the success of the financial performance and development of companies by attracting investors. With this aim, the impact of financial report quality, managerial ownership and research and development investment on audit report delay was investigated. In this regard, a sample of 154 companies listed in the Tehran Stock Exchange was examined during the period of 2017 to 2021. Multivariate regression was used to test the hypothesis and Eviews software was used for statistical analysis. The results showed that the quality of the financial report and managerial ownership have a direct positive and significant relationship with the delay of the audit report, and research and development investment has no significant effect on the delay of the audit report. Manuscript profile

Open Access Article

24 - The Relationship between the Financial Statements Comparability and Company Growth Opportunities Regarding the Mediating Role of Financial Constraints and Financial Reporting Quality
Younes Badavar Nahandi Mohammadreza Abbasi Astamal Zeinab Omarpour Mesrkanlo

This research is practical in terms of purpose, and from the point of view of correlation methodology, it is causal type (post-event). The statistical population of the research is the companies admitted to the Tehran Stock Exchange, and using the systematic elimination More

This research is practical in terms of purpose, and from the point of view of correlation methodology, it is causal type (post-event). The statistical population of the research is the companies admitted to the Tehran Stock Exchange, and using the systematic elimination sampling method, 129 companies were selected as the research sample in the 6-year period between 2017 and 2022. The results of the research show that there is a positive relationship between the comparability of financial statements and the company's growth opportunities. Financial constraints play a mediating role in the positive relationship between comparability of financial statements and company growth opportunities. In other words, the comparability of financial statements increases the growth opportunities of the company by helping to reduce financial constraints. The quality of financial reporting plays a mediating role in the positive relationship between the comparability of financial statements and the company's growth opportunities. In other words, the comparability of financial statements increases the company's growth opportunities by helping to increase the quality of financial reporting.company's growth opportunities. In other words, the comparability of financial statements increases the company's growth opportunities by helping to reduce financial constraints. The quality of financial reporting plays a mediating role in the positive relationship between the comparability of financial statements and the company's growth opportunities. In other words, the comparability of financial statements increases the company's growth opportunities by helping to increase the quality of financial reporting. Manuscript profile

Open Access Article

25 - Divergence and Convergence of Auditor Monitoring and Financial Reporting Quality: Meta-Analysis Technique
Vahid Bekhradi Nasab Ali Khoshdel

10.30495/jmemiau.2024.708669

The relationship between auditing mechanisms and financial reporting has been investigated quantitatively in different time periods and in numerous researches. But the evidence shows contradictory results of the effect of supervision and auditor's role on the quality of More

The relationship between auditing mechanisms and financial reporting has been investigated quantitatively in different time periods and in numerous researches. But the evidence shows contradictory results of the effect of supervision and auditor's role on the quality of financial reporting. Based on this, the role of the auditor's supervision on the quality of financial reporting was examined from the perspective of divergence and convergence. The method used is the meta-analysis technique for the years 2006 to 2019. The collection of researches is using the website of the Ministry of Science. Finally, eighteen studies were selected according to the availability of information and having the conditions of the investigated variables to implement the meta-analysis technique. The meta-analysis evidence showed that regardless of the contradictory evidence of the effect of internal and external audits of the auditor on the quality of financial reporting, the characteristics of the audit committee, the characteristics of independent auditors, and the characteristics of internal auditors have a positive and significant effect on the quality of financial reporting. Also, the corporate governance system has a moderating role on the relationship between the types of audits and the quality of financial reporting. Based on this, the present study, using the meta-analysis technique, has investigated the contradictions in empirical researches related to the divergence and convergence of auditor supervision and the quality of financial reporting. Manuscript profile

Open Access Article

26 - To Study the Effect of Characteristics of Corporate Governance on the Quality of Financial Reporting (Evidence from Tehran Stock Exchange)
Roya Darabi Mahnaz Piri

This research studies the effect of Corporate Governance on quality of financial reports of admitted companies in Tehran Stock Exchange in a 7-year period from 2006 to 2012. It is expected that establishment of appropriate Corporate Governance would prevent decrease in More

This research studies the effect of Corporate Governance on quality of financial reports of admitted companies in Tehran Stock Exchange in a 7-year period from 2006 to 2012. It is expected that establishment of appropriate Corporate Governance would prevent decrease in quality of financial reports along with making financial reporting process more controllable. In the present research we have used preciseness of prediction of future operational cash currents via operational profit elements as a measurement index from evaluation of financial reporting quality and also relation of off-duty members of board of directors, organizational investors owned share, power concentration, board of directors size, ownership structure, type of ownership, free floating share percentage, auditing quality, internal auditing, financial reporting quality and auditing period were used as Corporate Governance. A total number of 100 companies were selected as sample companies and using comparison test of average of the two societies we would analyze the results. The results achieved from the research indicated that ability index of Corporate Governance which consists of all structural specifications studied in this research is not effective on the quality of financial reporting of the companies admitted in Tehran Stock Exchange. Also in studying the effect of Corporate Governance individually it was observed that only quality of auditing reporting would affect the quality of financial reporting of the companies. Manuscript profile

Open Access Article

27 - The Impact of Financial Reporting Quality and Debt Maturity on the Investment Efficiency
Yadollah Noorifard Hassan Chenari Bouket

This study investigates the impact of financial reporting quality and debt maturity on the investment efficiency in the companies registered in Tehran Stock Exchange during the years between 2009 to 2013. In this research, for measuring the quality of financial reportin More

This study investigates the impact of financial reporting quality and debt maturity on the investment efficiency in the companies registered in Tehran Stock Exchange during the years between 2009 to 2013. In this research, for measuring the quality of financial reporting, we have used Francis et al. (2005) model, and for debt maturity date of short-term debt ratio to total debt and investment efficiency, we have applied Biddle et. al. (2009) model. Data analysis of this research was conducted using multiple linear regression and concatenated data. The findings of the first hypothesis test have demonstrated that there is a significant relevance between financial reporting quality and efficiency of investment. The findings of the second hypothesis have shown that there is a significant relevance between the financial reporting quality and the investment efficiency. In other words, we could reach to the conclusion that the improvement of the quality of financial reporting and the reduction of debt maturity due to reduced information asymmetry and prolonging the period of debt maturity contracts and strengthening of creditors monitoring on senior managers and the whole company operation, leads to increased efficiency of investment.   Manuscript profile

Open Access Article

28 - The Effect of Financial Reporting Quality on Relationship between Short-term institutional Shareholders and Business Strategies
HamidReza Mehravar Negar khosravipour zahra Lashgari

Institutional investors have a sufficient incentive to encourage managers to improve the quality of financial reporting and disclosure and to monitor manager's behavior. The purpose of this study is to investigate the quality of financial reporting, investment horizon a More

Institutional investors have a sufficient incentive to encourage managers to improve the quality of financial reporting and disclosure and to monitor manager's behavior. The purpose of this study is to investigate the quality of financial reporting, investment horizon and trading strategy of institutional investors of companies listed on the Tehran Stock Exchange. This research has been conducted in 135 companies listed on the Tehran Stock Exchange that have been selected based on the systematic elimination method. Also, this research has been done based on the information contained in the financial reports of companies in the period of 2009 to 2018. The method used is regression based on panel data. The results of the study regression model showed that the quality of financial reporting has a significant and positive effect on the relationship between short-term institutional investors and trading strategy but short-term institutional shareholders are temporary investors pay more attention to current earnings in determining stock prices than to encourage managers to improve the quality of financial reporting and disclosure. Manuscript profile

Open Access Article

29 - Examining the Impact of Financial Reporting Quality on Dividend Policy of the Companies
Gholamhossein Mahdavi Gholam Reza Rezaei

The goal of this paper is examining the impact of Financial Reporting Quality(FRQ) on Dividend Policy of the companies listed on Tehran Stock Exchange. Therefore, using Francis et al.(2005) model, the Innante and Discretionary Accruals Quality has been used as an indica More

The goal of this paper is examining the impact of Financial Reporting Quality(FRQ) on Dividend Policy of the companies listed on Tehran Stock Exchange. Therefore, using Francis et al.(2005) model, the Innante and Discretionary Accruals Quality has been used as an indicator for the FRQ. The research population composes of 64 companies listed on Tehran Stock Exchange which have been studied. Multivariate linear regression statistical analysis was used to test the hypotheses of the research. The results show that there is a direct significant relationship between the Innante Accruals Quality and the Dividend Payout, but there is not any significant relationship between the Discretionary Accruals Quality and the Dividend Payout. In addition, the results of research concerning control variables show that there is a reverse relationship between Q-Tobin,s ratios and operating expenses to sales ratios and the Dividend Payout, but there is not any significant relationship between the other control variables(i.e., firm size and Return on Equity) and the Dividend Payout. Manuscript profile

Open Access Article

30 - Proposing a Network Data Envelopment Analysis (NDEA) Model for Evaluating Information Efficiency of Reporting Entities
Safdar Alipour esfandyar malekian Hossein Fakhari

10.30495/faar.2022.693668

AbstractThe research objective is to develop a model for evaluating information quality of reporting entities using network data envelopment analysis (NDEA) models. The main motivation is the multidimensional feature of information quality concept with respect to the pr More

AbstractThe research objective is to develop a model for evaluating information quality of reporting entities using network data envelopment analysis (NDEA) models. The main motivation is the multidimensional feature of information quality concept with respect to the proxies and consequences of information quality along with the capabilities of DEA models in evaluating efficiency of decision-making units (DMUs: here the reporting entities) based on different inputs and outputs. In this regard, firstly the most important proxies and consequences of information quality are extracted from literature review and secondly considered as inputs and outputs of consequential two-stage NDEA model depending on their relationships with information quality concept and finally the information efficiency of reporting entities measured using simultaneously the proxies and consequences of information quality. The results revealed differences in DMUs' information efficiencies in different stages suggesting classic viewpoint deficiency of DEA models in evaluating DMUs' efficiency. Moreover, DMUs' efficiencies in first stage (proxies of information quality) are greater than their corresponding efficiencies in second stage (transforming proxies to consequences) and network efficiencies, resulted from optimization of all distinct stages, take an amount between first- and second-stage efficiencies. Among other results of the research in addition to providing a unique amount of network efficiency, is giving explanations for network and its components inefficiency, and identifying benchmarks for optimizations of inputs and outputs of each stage and overall network and setting a way to efficient frontier. Manuscript profile

Open Access Article

31 - Comparability of Accounting, Quality of Financial Reporting and Pricing Efficiency of Optional Accruals
Farzaneh Nasirzadeh Seyed Mohsen Salehi Vaziri

10.30495/faar.2023.707967

AbstractThis study examines the relationship between accounting comparability and the quality of financial reporting and the pricing efficiency of discretionary accruals, taking the view that comparability improves the information environment and not only enhances the a More

AbstractThis study examines the relationship between accounting comparability and the quality of financial reporting and the pricing efficiency of discretionary accruals, taking the view that comparability improves the information environment and not only enhances the ability of managers to accurately assess liabilities, it also improves investors' understanding of commitments. The investigation companies included 71 companies during the years 2012 to 2019. In this study, Di Franco's (2011) model for accounting comparability, Kotari et al. (2005) and Kaznik's (1999) models for financial reporting quality, and McNichols' (2002) model for accruals were used. The findings showed that increasing the comparability of financial statements reduced the absolute value of accruals and the lower the amount, the higher the quality of financial reporting. Overall, the obtained results revealed that comparability is associated with higher quality financial reporting, as comparability improves the accrual estimation process and the ability to signal future performance. Further, it was concluded that accountability comparability has a negative relationship with the pricing efficiency of optional accruals. In other words, the higher comparability of financial statements in the previous year has increased the perception of users regarding the financial statements of pricing of accruals. Accordingly, the more negative the coefficient of the variable, the higher the understanding of investors. We also found that when comparability was greater, the investors did not respond so strongly to optional accruals. Manuscript profile

Open Access Article

32 - Evaluation the Effect of Life Cycle and Expand Option on Regulator Role of Financial Reporting Quality in Mitigating the Constraining Effect of Divide
علی نادری محسن دستگیر فرزاد کریمی

This Research Investigates the Role of Financial Reporting Quality inMitigating the Constraining Effect of Dividend Policy on Investment Decisions with regard to general price index. In this way 107 firms were by systematic elimination and data were modified by general More

This Research Investigates the Role of Financial Reporting Quality inMitigating the Constraining Effect of Dividend Policy on Investment Decisions with regard to general price index. In this way 107 firms were by systematic elimination and data were modified by general price index. We used multiple regression for structuring and testing hypothesis in the pattern of combined data with respect to the effect of life cycle on the structure of expenses, sales and profitability. We classified firms in to the growth, maturity, and decline period. Accordingly the effect of financial reporting quality in the growth and maturity period were evaluated significant and therefore it can be said the different firm characteristics are effective in this phases. In evaluating expand option, the role of Financial Reporting Quality in high expand option firms was significant. Besides The Role of Financial Reporting Quality among firms with high and low financial Reporting Quality were evaluated significant. Default theoretical basis about the restriction of dividend policy decisions on investment, among firm in different phases of life cycle, different level of expand option were confirmed.    Manuscript profile

Open Access Article

33 - Investigating the Relationship between Financial Reporting Quality and Capital Intensity and Moderating Role of Growth Opportunities
یحیی حساس یگانه اسماعیل توکل نیا

From the agency theory perspective, there are various control mechanisms to attenuate information asymmetries and information risk and to enable better supervision of managerial activity that mitigates the opportunistic behavior of managers, such as financial reporting More

From the agency theory perspective, there are various control mechanisms to attenuate information asymmetries and information risk and to enable better supervision of managerial activity that mitigates the opportunistic behavior of managers, such as financial reporting quality and disclosure. Several studies have analyzed some of information asymmetries and information risk attenuate effects, such as the reduction of the cost of capital and cost of debt and access to the debt market and the effect on its conditions, i.e., lower cost, higher debt maturity and lower guarantees in bank financing. This study, examines the impact of financial reporting quality and growth opportunities on the capital intensity. The sample of this study, includes 134 companies listed in the Tehran Stock Exchange during the period 1392-1396 and for processing and testing hypotheses, panel data methodology is used. The results show that financial reporting quality has negative impact on the capital intensity. Also, it shows that growth opportunity decreases negative impact of financial reporting quality on capital intensity. Therefore designed conceptual model is confirmed. Manuscript profile

Open Access Article

34 - The Impact of the Risk Committee on the Quality Financial Reporting and Auditing Fees
Saeed Omidi Kordsholi Mohammad reza Pajoohi

10.30495/faar.2024.709446

Abstract Risk Management Committee alone obliges auditors to conduct more regular audits and call for escalated levels of audit oversight. In other words, external auditors are obliged to dig deeper into financial statements which is more time consuming and incurs high More

Abstract Risk Management Committee alone obliges auditors to conduct more regular audits and call for escalated levels of audit oversight. In other words, external auditors are obliged to dig deeper into financial statements which is more time consuming and incurs higher audit fees. The risk management committee may also encourage companies to allocate sufficient resources to their internal control systems and place them at the center of attention, which should in turn lead to more reliable financial statements. The present study was an attempt to investigate the impact of the risk management committee on the quality of financial reporting and auditing fees. To this end, a sample of 103 companies listed on the Tehran Stock Exchange was selected. The panel data method and principal component analysis (carried out within the framework of R statistical software) were used to test the hypotheses. The results showed that the risk management committee has no significant effect on the quality of financial reporting and auditing fees. Manuscript profile

Open Access Article

35 - The Effect of Auditor Selection on the quality of Financial Reporting
Mohammad Hosein Fatheh Elahe Bagheri Meysam Jafaripour

10.30495/faar.2023.707970

Abstract Choosing an auditor is one of the most important decisions made by the shareholders of a company. Therefore, the current research was conducted with the aim of investigating the effect of auditor selection on the quality of financial reporting of companies adm More

Abstract Choosing an auditor is one of the most important decisions made by the shareholders of a company. Therefore, the current research was conducted with the aim of investigating the effect of auditor selection on the quality of financial reporting of companies admitted to the Tehran Stock Exchange. For this purpose, the information of 133 companies admitted to the Tehran Stock Exchange was extracted based on the research variables through the Rahvard Nowin software and analyzed with the help of the regression of the generalized least squares method with the panel data approach and in the form of fixed effects. In order to measure the quality of financial reporting, discretionary accruals adjusted based on performance have been used. The results of the research hypothesis test showed that the selection of the auditor has a positive and significant effect on the quality of financial reporting of companies admitted to the Tehran Stock Exchange, and the research hypothesis is confirmed at the 95% confidence level. In other words, the selection of auditors with higher quality and trained staff leads to an increase in audit quality and subsequently to an increase in the quality of financial reporting. Manuscript profile

Open Access Article

36 - Investigating the Effect of Accounting Comparability on Financial Reporting Quality and Tax Avoidance
Alireza Rahimi Ali Kiani

10.30495/faar.2024.709450

Abstract This study investigated the effect of accounting comparability on financial reporting quality and tax avoidance. Accounting comparability improves information environment. Increased financial reporting transparency caused by increased accounting comparability More

Abstract This study investigated the effect of accounting comparability on financial reporting quality and tax avoidance. Accounting comparability improves information environment. Increased financial reporting transparency caused by increased accounting comparability provides users a better understanding of the information content of financial reports, furthermore it reduces the opportunistic behaviour of managers. Meanwhile in reporting financial information for tax purposes transparent and comparable information plays an important role in in tax decisions.In this study by focusing on on an important aspect of financial reporting environment, that is accounting comparability, we are supposed to investigate the effects it could have on financial reporting quality and tax avoidance. To do so we have sampled out 110 companies listed with stock exchange. We have used multiple linear regression models to test the hypotheses. Our findings are indicative of positive relation between accounting comparability and financial reporting. the financial statement comparability as a governance mechanism prevents managers opportunistic behaviors including tax avoidance. quality as well as negative relation between accounting comparability and tax avoidance which are both in accordance with the hypotheses. based on the results of this study, when the quality of financial reporting, high and lower tax avoidance and tax avoidance, the capacity of accounting comparison improves the ability of users to identify similarities and differences between economic phenomena. As a result, consumers choose the best financial information that makes decisions more effective.  Manuscript profile

Open Access Article

37 - Managers Narcissism, Leadership Styles Choices in Accounting
Saeed Farokh Azita Jahanshad

10.30495/faar.2022.698387

Abstract Some studies have shown that managers' narcissism can affect the choice of leadership styles in accounting (including management, social responsibility, financial reporting quality, etc.). Since no study has been done to evaluate the impact of managers' narcis More

Abstract Some studies have shown that managers' narcissism can affect the choice of leadership styles in accounting (including management, social responsibility, financial reporting quality, etc.). Since no study has been done to evaluate the impact of managers' narcissism on leadership styles in accounting, present study intends to examine this issue; therefore, the present study evaluates the relationships between managers' narcissism, selection of leadership styles in accounting. The statistical population of this study includes managers of companies in Tehran Stock Exchange. Because access to all members of the statistical community was not possible, the available sampling method was used. Therefore, the questionnaires were distributed among individuals and a total of 150 completed questionnaires were collected. Data analysis was performed using structural equations and with the help of LISREL software.  The findings of the research showed that managers' narcissism had a greater impact on the transformational leadership style in accounting than the practical one. In addition, managers narcissism affect on practical leadership style and transformational leadership style in determining companies business strategy, social responsibility , profit management and financial reporting quality. Manuscript profile

Open Access Article

38 - The Effect of Accounting Comparability on Financial Reporting Quality with Emphasis on Audit Quality
Zohreh Hajiha hasan chenari

10.30495/jdaa.2023.699869

AbstractThe aim of this study was to investigate the effect of comparing financial statements on the quality of financial reporting with emphasis on audit quality. It is argued that comparability increases the usefulness of accounting information and makes it possible t More

AbstractThe aim of this study was to investigate the effect of comparing financial statements on the quality of financial reporting with emphasis on audit quality. It is argued that comparability increases the usefulness of accounting information and makes it possible to identify similarities and differences between economic events for users of financial statements.For this purpose, information on the financial statements of 103 companies has been collected. Multivariate regression with panel data has been used to test the hypotheses.The findings of the research hypothesis test show that the comparability of financial statements enhances the quality of financial reporting, but the moderating role of audit quality is ineffective in this relationship.Managers' ability to evaluate the company's performance and predict future events and to provide information on reliable forward-looking estimates that can be used to report higher quality commitment items increases. Manuscript profile

Open Access Article

39 - Effect of Audit Quality on the Relationship Between Audit committee characteristics and financial reporting quality.
Seyed Hossein Nasle Mosavi Ebrahim Enayatpour Shiadeh Arash Azinfar

10.30495/afi.2022.1952286.1105

Financial Reporting Quality is one of the most important effective factors in decision making of investors. Therfor, The main objective of this study was to Relationship Between characteristics of the Audit committee and financial reporting quality proxied by accrual qu More

Financial Reporting Quality is one of the most important effective factors in decision making of investors. Therfor, The main objective of this study was to Relationship Between characteristics of the Audit committee and financial reporting quality proxied by accrual quality. To Further clarify the mentioned links, this study empiricaly assesses the moderating effect of audit quality. This study is based on a sample consisting of 120 in the companies listed in Tehran Stock Exchange. The sample of the research consists of 120 companies listed on Tehran stoch exchange during the period from 2014 – 2019. This study has applied multiple regression to test hypotheses and EVIEWS 10 software is used for analysis of data. The findings showed that Findings showed that there is a positive and significant relationship between the characteristics of the audit committee and the quality of financial reporting. Also, audit quality has a positive and significant effect on the relationship between the characteristics of the audit committee and the quality of financial reporting. Manuscript profile

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