The effect of reducing the complexity of financial reporting and earnings management with social responsibility

Complexity is one of the most important topics in financial reporting. The complexity arises from the inherent difficulties in applying accepted accounting principles and charting a company's economic activities to identify and measure elements of financial statements using accounting rules. On the other hand, one of the most important and sensitive issues in companies today is the issue of corporate social responsibility, and people are more inclined to invest in companies that provide social responsibility reporting. The purpose of this study is to investigate the relationship between financial reporting and corporate social responsibility and profit management in them. This research has been reviewed during a 10-year study from 2009 to 2019. The results of this study show that there is an inverse and significant relationship between the complexity of financial reporting and social responsibility and the less the reporting of social responsibility, the complexity of financial reporting increases. Among earnings management indicators, we also found that with increasing training programs for members of the profession or industry and the ratio of fixed assets to total assets, the complexity of financial reporting decreases, but increasing the number of board members is inversely related to the complexity of financial reporting. The ratio of advertising and marketing costs to sales has no significant relationship with the complexity of financial reporting. There is also a direct and significant relationship between earnings management and the complexity of financial reporting. And increasing profit management will complicate financial reporting software