Assessing the effect of readability of financial statements and financial reporting credibility on companies' value creation from the perspective of shareholders

Document Type : Original Article

Authors
Arash Behdash 1
Ehsan Rahmaninia 1
reza tehrani 2
A Akbar Chahar Mahali 1
1 Department of Accounting, North Tehran Branch, Islamic Azad University, Tehran, Iran
2 Department of Management, North Tehran Branch, Islamic Azad University, Tehran, Iran Reza Tehrani, Department of Management , Tehran University, Tehran, Iran
Abstract
In recent decades, the development of capital markets and the increasing complexity of markets and financial and economic events have increased the expectations of accounting and in addition to numerical and financial information, it has also demanded non-numerical, non-financial and descriptive information in explanatory accounting reports. There are many choices made by the manager and the author, and there is a degree of authority over the content of the report and even its form. In this study, we tried to examine other aspects that have been neglected from the perspective of other researchers, so the main purpose of this study is to assess the impact of financial statement readability and financial reporting validity on companies' value creation from the perspective of shareholders. One of the companies listed on the Tehran Stock Exchange was selected using the sampling method. This research was conducted for the period 1394 to 1399 in Tehran Stock Exchange. The statistical method used in this research is multivariate regression method using data panel method. The results of testing the research hypotheses showed that the improvement in the readability of financial statements and financial reporting credit has increased the value creation of companies from the perspective of shareholders. .
Keywords
Financial Reporting Credibility
Readability of Financial Statements
Value Creation of Companies from the Perspective of Company Shareholders
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