Structural Equation Modeling to Investigate the Impact of Information Quality Indicators on Financial Reporting Quality Risk with Emphasis on the Mediating Role of Risk Management: Evidence from Tehran Stock Exchange

Document Type : Original Article

Authors

1 Department of Accounting, Kish International Branch, Islamic Azad University, Kish Island, Iran

2 Associate Professor, Department of Accounting, South Tehran Branch, Islamic Azad University, Tehran, Iran

3 Assistant Professor, Department of Accounting, South Tehran Branch, Islamic Azad University, Tehran, Iran

Abstract

The quality of financial reporting is an effective factor in reducing information asymmetry that can affect different dimensions of the company. Although this has been the subject of many researches in the financial and accounting literature, a few researches have been done on the impact of the quality of accounting information and risk management on the quality of reporting through structural analysis. In this study, in order to measure the quality of financial reporting, six methods have been used in Iranian companies. For this purpose, 138 companies from selected companies in the Tehran Stock Exchange have been selected as the sample and their financial information has been examined during the years 2011 to 2018. Evidence of analysis on the method of structural equations shows that the quality of accounting information has a significant and positive effect on the quality of financial reporting, but risk management cannot play a role in moderating this relationship.

Keywords

References

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International Journal of Finance & Managerial Accounting
Volume 6, Issue 23 - Serial Number 23
October 2021
Pages 151-167

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