The Impact of Blockchain Technology on Enhancing Transparency and Security of Financial Reporting: Opportunities and Challenges
محورهای موضوعی : • Emerging technology in the field of Accounting and its futureHamid Birjandi 1 , Zahra Fathi 2
1 - Budget Expert, Shiraz Municipality, Shiraz, Iran
2 - Ph.D. of Accounting, Bahonar university, Kerman, Iran
کلید واژه: Blockchain, Financial Reporting, Transparency, Security, Trust,
چکیده مقاله :
Objectives: This study aims to examine the impact of blockchain technology on transparency, security, fraud reduction, and stakeholder trust in financial reporting. It is grounded in the view that emerging technologies like blockchain can transform financial processes by enhancing accuracy, reliability, and efficiency.
Methodology/Design/Approach: A quantitative approach and Partial Least Squares Structural Equation Modeling (PLS-SEM) were employed to analyze data collected from 312 accounting and financial professionals working in companies listed on the Tehran Stock Exchange.
Findings: The results indicate that the adoption of blockchain technology significantly enhances financial reporting transparency, improves information security, reduces fraud and financial errors, and increases stakeholder trust and technology acceptance.
Innovation: This research contributes to the literature by empirically demonstrating the strategic importance of blockchain technology in transforming financial and auditing processes. It highlights its role as an effective tool for improving the accuracy, reliability, and efficiency of financial reporting in emerging markets.
Objectives: This study aims to examine the impact of blockchain technology on transparency, security, fraud reduction, and stakeholder trust in financial reporting. It is grounded in the view that emerging technologies like blockchain can transform financial processes by enhancing accuracy, reliability, and efficiency.
Methodology/Design/Approach: A quantitative approach and Partial Least Squares Structural Equation Modeling (PLS-SEM) were employed to analyze data collected from 312 accounting and financial professionals working in companies listed on the Tehran Stock Exchange.
Findings: The results indicate that the adoption of blockchain technology significantly enhances financial reporting transparency, improves information security, reduces fraud and financial errors, and increases stakeholder trust and technology acceptance.
Innovation: This research contributes to the literature by empirically demonstrating the strategic importance of blockchain technology in transforming financial and auditing processes. It highlights its role as an effective tool for improving the accuracy, reliability, and efficiency of financial reporting in emerging markets.
Akerlof, G. A. (1970). The market for “lemons”: Quality uncertainty and the market mechanism. The Quarterly Journal of Economics, 84(3), 488–500.
Alles, M. G. (2015). Drivers of the use and facilitators and obstacles of the evolution of big data by the audit profession. Accounting Horizons, 29(2), 439–449. https://doi.org/10.2308/acch-51068
Baruch, Y., & Holtom, B. C. (2008). Survey response rate levels and trends in organizational research. Human Relations, 61(8), 1139–1160. https://doi.org/10.1177/0018726708094863
Bushman, R. M., & Landsman, W. R. (2010). The pros and cons of regulating corporate reporting: A critical review of the arguments. Accounting and Business Research, 40(3), 259–273. https://doi.org/10.1080/00014788.2010.9663390
Casino, F., Dasaklis, T. K., & Patsakis, C. (2019). A systematic literature review of blockchain-based applications: Current status, classification and open issues. Telematics and Informatics, 36, 55–81. https://doi.org/10.1016/j.tele.2018.11.006
Chen, L., Xu, J., & Zhang, B. (2020). Blockchain technology in accounting and auditing: A literature review and research agenda. Journal of Emerging Technologies in Accounting, 17(1), 67–85.
Chen, Y., Bellavitis, C., & Song, Y. (2020). How blockchain technology impacts financial accounting: A review. Journal of Accounting Literature, 43, 1–12. https://doi.org/10.1016/j.acclit.2019.12.002
Cochran, W. G. (1977). Sampling Techniques (3rd ed.). Wiley.
Creswell, J. W. (2014). Research Design: Qualitative, Quantitative, and Mixed Methods Approaches (4th ed.). Sage Publications.
Dai, J., & Vasarhelyi, M. A. (2017). Toward blockchain-based accounting and assurance. Journal of Information Systems, 31(3), 5–21. https://doi.org/10.2308/isys-51804
Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly, 13(3), 319–340. https://doi.org/10.2307/249008
Dechow, P. M., Ge, W., & Schrand, C. (2011). Understanding earnings quality: A review of the proxies, their determinants and their consequences. Journal of Accounting and Economics, 50(2–3), 344–401. https://doi.org/10.1016/j.jacceco.2010.09.001
Dillman, D. A., Smyth, J. D., & Christian, L. M. (2014). Internet, Phone, Mail, and Mixed-Mode Surveys: The Tailored Design Method (4th ed.). Wiley.
Fanning, K., & Centers, D. P. (2016). Blockchain and its coming impact on financial services. Journal of Corporate Accounting & Finance, 27(5), 53–57.
Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50. https://doi.org/10.2307/3151312
Goh, J. M., Hu, M., & Shen, X. (2023). The adoption of blockchain technology in accounting and auditing: Current trends and future directions. Accounting Horizons, 37(2), 101–118.
Glaser, F. (2017). Pervasive decentralisation of digital infrastructures: A framework for blockchain enabled system and use case analysis. Proceedings of the 50th Hawaii International Conference on System Sciences, 1543–1552. https://doi.org/10.24251/HICSS.2017.186
Hair, J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2017). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM) (2nd ed.). Sage Publications.
Hair, J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2019). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). Sage Publications.
Healy, P. M., & Palepu, K. G. (2001). Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature. Journal of Accounting and Economics, 31(1–3), 405–440. https://doi.org/10.1016/S0165-4101(01)00018-0
Henseler, J., Ringle, C. M., & Sinkovics, R. R. (2009). The use of partial least squares path modeling in international marketing. In R. R. Sinkovics & P. N. Ghauri (Eds.), New Challenges to International Marketing (Advances in International Marketing, Vol. 20, pp. 277–319). Emerald Group Publishing Limited. https://doi.org/10.1108/S1474-7979(2009)0000020014
Hossain, M., & Kaur, P. (2023). Organizational resistance to blockchain adoption in accounting: An empirical study. International Journal of Accounting Information Systems, 45, 100659.
Hossain, M. U., & Kaur, R. (2023). Technology acceptance in accounting firms: Role of blockchain trustworthiness. International Journal of Accounting Information Systems, 45, 100712. https://doi.org/10.1016/j.accinf.2023.100712
Hsu, C. C., & Sandford, B. A. (2007). The Delphi technique: Making sense of consensus. Practical Assessment, Research, and Evaluation, 12(10), 1–8.
Johnson, M., & Wang, Y. (2023). Trust and acceptance of blockchain technology in financial reporting. Journal of Emerging Technologies in Accounting, 20(1), 45–61. https://doi.org/10.2308/jeta-2023-003
Johnson, T., & Wang, Y. (2023). Regulatory challenges of blockchain adoption in financial reporting. Journal of Financial Regulation and Compliance, 31(3), 215–230.
Johnson, T., & Wang, S. (2023). Blockchain adoption in accounting: A systematic literature review. Journal of Accounting and Technology, 10(2), 125–142.
Kim, H. M., & Laskowski, M. (2023). Blockchain-based transparent accounting and auditing: An empirical study. Accounting Review, 98(2), 345–374. https://doi.org/10.2308/accr-52547
Kokina, J., & Davenport, T. H. (2017). The emergence of artificial intelligence: How automation and machine learning are affecting the accounting profession. Journal of Emerging Technologies in Accounting, 14(1), 115–122. https://doi.org/10.2308/jeta-51709
Kshetri, N. (2017). Blockchain’s roles in meeting key supply chain management objectives. International Journal of Information Management, 39, 80–89. https://doi.org/10.1016/j.ijinfomgt.2017.12.005
Li, X., & Xu, Z. (2024). Hybrid blockchain architecture for enhanced cybersecurity in financial reporting. Journal of Information Security and Applications, 68, 103337. https://doi.org/10.1016/j.jisa.2023.103337
Li, Y., & Xu, Q. (2024). Scalability issues in blockchain-based financial reporting systems: Solutions and challenges. Computers & Security, 122, 102926.
Nakamoto, S. (2008). Bitcoin: A peer-to-peer electronic cash system. https://bitcoin.org/bitcoin.pdf
Nguyen, T., Tran, D., & Pham, Q. (2024). Blockchain and corporate governance: Evidence from the financial industry. Journal of Corporate Finance, 85, 102229.
Nguyen, T. T., Le, T. H., & Tran, T. T. (2024). Blockchain adoption and fraud reduction in financial reporting: Evidence from emerging markets. Journal of Financial Crime, 31(2), 532–551. https://doi.org/10.1108/JFC-08-2023-0172
Park, J., & Lee, S. (2023). Real-time auditing enabled by blockchain: Benefits and barriers. Accounting Review, 98(1), 45–67.
Park, S., & Lee, J. (2023). Traceability and auditability in blockchain-based financial systems. Journal of Accounting and Public Policy, 42(3), 102654. https://doi.org/10.1016/j.jaccpubpol.2023.102654
Park, S., Kim, D., & Choi, J. (2025). Leadership roles in blockchain adoption in accounting firms. Journal of Accounting & Organizational Change, forthcoming.
Park, S., Kim, J., & Lee, H. (2025). User experience and technology acceptance of blockchain in accounting. Information & Management, 62(1), 103713. https://doi.org/10.1016/j.im.2024.103713
Rahman, M., Abdullah, M., & Islam, M. (2024). Organizational readiness for blockchain implementation in accounting: A structural equation modeling approach. International Journal of Information Management, 63, 102485.
Rahman, M., Sultana, N., & Hasan, M. (2024). The role of emerging technologies in financial reporting: Evidence from Iran. International Journal of Accounting Information Systems, 38, 100573. https://doi.org/10.1016/j.accinf.2023.100573
Rahman, M., Sultana, R., & Hasan, M. (2024). Blockchain technology acceptance and trust: Evidence from accounting professionals. International Journal of Accounting Information Systems, 48, 100837. https://doi.org/10.1016/j.accinf.2024.100837
Resnik, D. B. (2015). What is ethics in research & why is it important? National Institute of Environmental Health Sciences. https://www.niehs.nih.gov/research/resources/bioethics/whatis/index.cfm
Ross, S. A., & Westerfield, R. W. (1999). Corporate Finance (5th ed.). McGraw-Hill.
Sadeghi, H., & Bilello, L. (2023). Barriers to blockchain adoption in accounting: A qualitative study. Journal of Emerging Technologies in Accounting, 20(3), 123–140.
Schmieder, F. (2024). The impact of blockchain on audit quality: Empirical evidence. Auditing: A Journal of Practice & Theory, 43(1), 45–67.
Shahzad, B., Rehman, H., & Khan, A. (2023). Factors influencing blockchain adoption in auditing: An extended UTAUT model. Journal of Accounting and Public Policy, 42(4), 103783.
Tan, B., & Lee, C. (2023). Transparency and accountability through blockchain technology in accounting. Journal of Accounting Research, 61(2), 451–478.
Taylor, S., & Todd, P. A. (1995). Understanding information technology usage: A test of competing models. Information Systems Research, 6(2), 144–176.
Venkatesh, V., & Bala, H. (2008). Technology acceptance model 3 and a research agenda on interventions. Decision Sciences, 39(2), 273–315.
Venkatesh, V., Morris, M. G., Davis, G. B., & Davis, F. D. (2003). User acceptance of information technology: Toward a unified view. MIS Quarterly, 27(3), 425–478.
Wang, Y., & Song, Y. (2023). Blockchain-enabled audit and assurance: Challenges and opportunities. Auditing: A Journal of Practice & Theory, 42(2), 125–148.
Xu, X., Weber, I., & Staples, M. (2019). Architecture for Blockchain Applications. Springer.
Zhao, J., & Ma, W. (2024). User trust and blockchain technology acceptance in accounting. Information & Management, 61(5), 103614. https://doi.org/10.1016/j.im.2024.103614
