The Effect of Financial Information Quality on the Convergence or Divergence of Managers’ and Shareholders’ Decisions with the Moderating Role of the Salience Phenomenon
Keywords:
Salience phenomenon, financial information quality, convergence and divergence of managers’ and shareholders’ decisionsAbstract
This study aims to examine the impact of financial information quality on the convergence or divergence of managers’ and shareholders’ decisions, considering the moderating role of the salience phenomenon. The research is applied in purpose and descriptive-correlational in nature. The statistical population includes companies listed on the Tehran Stock Exchange from 2012 to 2021. After applying selection criteria, 130 firms (1300 firm-years) were chosen using purposive sampling. Data were collected from financial statements and analyzed using EViews10 software through logistic regression models. The dependent variable was the convergence or divergence of managerial and shareholder decisions; the independent variable was financial information quality (accruals quality); and the moderating variable was the salience phenomenon. Control variables included firm size, financial leverage, return on assets, cash ratio, sales growth, stock return, and firm age. Results at the 95% confidence level indicate that financial information quality has a significant positive effect on the convergence and divergence of managerial and shareholder decisions. The regression coefficient for accruals quality was 1.616 with a probability value below 0.05. However, the salience phenomenon (interaction term QACC×SALI) showed no significant moderating effect, with a p-value above 0.05. The McFadden R² was 0.478, and the LR statistic was significant, confirming good model fit. Financial information quality enhances decision alignment between managers and shareholders by reducing information asymmetry and improving transparency. However, the salience phenomenon does not moderate this relationship, suggesting that selective attention to certain information segments does not significantly alter the impact of financial information quality on decision convergence. The findings highlight the necessity of improving financial reporting quality to promote strategic coherence and minimize conflicts of interest.
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Copyright (c) 2026 Mohadese Afzali (Author); Soghra Barari Nokashti (Corresponding author); Sina Kheradyar (Author)
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
