Presenting an Empirical Model of Financial Reporting Quality Using Information from Peer Companies Listed on the Tehran Stock Exchange
Keywords:
Financial information, information of similar companies, financial reporting qualityAbstract
This study aims to develop an empirical model explaining financial reporting quality using information from peer companies listed on the Tehran Stock Exchange. This applied study adopts a descriptive–analytical and correlational design. The statistical population consists of all firms listed on the Tehran Stock Exchange from 2013 to 2021, from which 140 firms were selected using a systematic elimination method. Data were collected from audited financial statements and official databases and analyzed using logistic regression in EViews10. The main independent variables included accrual quality, earnings persistence, internal control weakness, and fraud, while control variables such as firm size, sales, market value, and stock return volatility were incorporated into the model. At a 95% confidence level, results indicate that accrual quality has a positive and significant effect on peer firm selection (p<0.05). Earnings persistence also shows a positive and significant relationship with peer selection (p<0.05). However, internal control weakness and fraud exhibit no statistically significant relationship with peer firm selection (p>0.05). Additionally, certain control variables such as firm size and sales demonstrate significant positive effects, whereas others remain insignificant. The findings suggest that only specific dimensions of financial reporting quality—particularly accrual quality and earnings persistence—play a decisive role in peer firm selection, highlighting the importance of enhancing these attributes to improve investor decision-making and capital market efficiency.
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Copyright (c) 2025 Gholam Abbas Alishvandi (Corresponding author); Reza Tehrani, Shokrollah Khajavi (Author)
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
