Empirical Studies in Financial Accounting

Abstract This study aimed to investigate the effect of corporate social responsibility on building managerial empires by considering the moderating role of financial constraints and CEO overconfidence. The statistical population includes companies listed on the Tehran Stock Exchange and the research sample includes data from 105 companies over a 9-year period from 2014 to 2022, which were selected by systematic exclusion. The data were analyzed using multiple regression models and mixed data methods. The results showed that corporate social responsibility has a negative effect on building managerial empires, and this effect is strengthened under financial constraints and CEO overconfidence. The findings indicate that if the CEO pays attention to corporate social responsibility activities, it is possible to improve the company's financial performance, otherwise, shareholders should control CEOs with a history of building value-destroying empires and increase the level of corporate social responsibility disclosure. This research provides a suitable theoretical framework for understanding the relationship between social responsibility and empire building by managers and shows that including the variables of financial constraints and overconfidence can help stakeholders and shareholders exercise effective oversight over CEO activities.

This study aimed to investigate the effect of corporate social responsibility on building managerial empires by considering the moderating role of financial constraints and CEO overconfidence. The statistical population includes companies listed on the Tehran Stock Exchange and the research sample includes data from 105 companies over a 9-year period from 2014 to 2022, which were selected by systematic exclusion. The data were analyzed using multiple regression models and mixed data methods. The results showed that corporate social responsibility has a negative effect on building managerial empires, and this effect is strengthened under financial constraints and CEO overconfidence. The findings indicate that if the CEO pays attention to corporate social responsibility activities, it is possible to improve the company's financial performance, otherwise, shareholders should control CEOs with a history of building value-destroying empires and increase the level of corporate social responsibility disclosure. This research provides a suitable theoretical framework for understanding the relationship between social responsibility and empire building by managers and shows that including the variables of financial constraints and overconfidence can help stakeholders and shareholders exercise effective oversight over CEO activities.

This study aimed to investigate the effect of corporate social responsibility on building managerial empires by considering the moderating role of financial constraints and CEO overconfidence. The statistical population includes companies listed on the Tehran Stock Exchange and the research sample includes data from 105 companies over a 9-year period from 2014 to 2022, which were selected by systematic exclusion. The data were analyzed using multiple regression models and mixed data methods. The results showed that corporate social responsibility has a negative effect on building managerial empires, and this effect is strengthened under financial constraints and CEO overconfidence. The findings indicate that if the CEO pays attention to corporate social responsibility activities, it is possible to improve the company's financial performance, otherwise, shareholders should control CEOs with a history of building value-destroying empires and increase the level of corporate social responsibility disclosure. This research provides a suitable theoretical framework for understanding the relationship between social responsibility and empire building by managers and shows that including the variables of financial constraints and overconfidence can help stakeholders and shareholders exercise effective oversight over CEO activities.

This study aimed to investigate the effect of corporate social responsibility on building managerial empires by considering the moderating role of financial constraints and CEO overconfidence. The statistical population includes companies listed on the Tehran Stock Exchange and the research sample includes data from 105 companies over a 9-year period from 2014 to 2022, which were selected by systematic exclusion. The data were analyzed using multiple regression models and mixed data methods. The results showed that corporate social responsibility has a negative effect on building managerial empires, and this effect is strengthened under financial constraints and CEO overconfidence. The findings indicate that if the CEO pays attention to corporate social responsibility activities, it is possible to improve the company's financial performance, otherwise, shareholders should control CEOs with a history of building value-destroying empires and increase the level of corporate social responsibility disclosure. This research provides a suitable theoretical framework for understanding the relationship between social responsibility and empire building by managers and shows that including the variables of financial constraints and overconfidence can help stakeholders and shareholders exercise effective oversight over CEO activities.

Abstract Abstract

Purpose: This research investigates the impact of financial disclosure complexity on the reaction of the Iranian capital market, emphasizing the moderating role of social media attention. Grounded in behavioral finance, specifically limited attention theory and information processing costs, the study addresses two questions: (1) whether more complex financial disclosures lead to weaker market reaction in the Tehran Stock Exchange (TSE), and (2) whether attention generated on Persian Twitter moderates this negative relationship. The study provides empirical evidence from an emerging market context, contributing to the literature on cognitive biases in financial decision-making and the informational role of social media.



Theoretical Framework and Hypothesis Development: The theoretical framework integrates Limited Attention Theory (Kahneman, 1973; Hirshleifer & Teoh, 2003) and Information Processing Cost Theory (Bloomfield, 2008). Investors face cognitive constraints, operating as selective information processors. Complex disclosures—characterized by length, numerical density, and ambiguous language—elevate processing costs, leading to incomplete or delayed price adjustments. This phenomenon is particularly pronounced in emerging markets like Iran, where retail investors with lower financial literacy constitute a significant portion of market participants (Moradi et al., 2021). Concurrently, the digital attention economy paradigm suggests social media platforms have become primary arenas for attracting investor attention. Platforms like Twitter facilitate collective discourse and cognitive facilitation, potentially mitigating the adverse effects of information complexity. Based on this synthesis, two hypotheses were developed: H1 posits a negative relationship between financial disclosure complexity and immediate market reaction (measured by cumulative abnormal returns and abnormal trading volume). H2 proposes that pre-disclosure social media attention positively moderates this relationship; the negative effect of complexity on market reaction is weaker for firms receiving higher levels of digital attention.



Methodology: The study employs a quantitative, event-study-based design with panel data spanning 2016–2023. The final sample comprises 1,024 firm-year observations from 128 non-financial companies listed on the TSE, selected through systematic screening. Disclosure complexity was measured using a multidimensional composite index, standardizing and averaging three proxies: (1) report length (logarithm of word count in explanatory notes), (2) numerical density (ratio of numerical digits to total words), and (3) degree of ambiguity (frequency of uncertain words such as "may," "probably," "risk"). Textual data were extracted from financial reports on the Codal database using Python libraries (PyPDF2, pdfplumber, BeautifulSoup) and processed with Hazm, a specialized Persian NLP library. Investor attention was quantified using data from Persian Twitter. Twitter was selected due to its textual nature, relatively open API, and prevalence as a forum for stock exchange discussions in Iran. Over 250,000 Persian tweets containing company-specific keywords (stock symbols, full names, abbreviations) were collected using snscrape and tweepy libraries. The attention metric (ATTN) was defined as the natural logarithm of the average daily count of unique, firm-specific posts during the five-day window preceding annual report releases. Control variables included firm size, book-to-market ratio, profitability (ROA), leverage, institutional ownership, Big Four auditor quality, and market return index. The analytical approach employed fixed-effects panel regression models with firm-clustered robust standard errors. The main model tested the interaction between COMP and ATTN, with robustness ensured through alternative variable constructions, different event windows, GMM estimation, and subsample analyses.



Key Findings: The empirical analysis provides strong support for both hypotheses. First, a statistically significant (p < 0.01) negative coefficient was found for the complexity variable (COMP). Economically, a one-standard-deviation increase in complexity leads to an approximately 1.4% reduction in short-window cumulative abnormal returns (CAR[0,+1]). This confirms that greater disclosure complexity dampens the market's immediate price adjustment, supporting limited attention and information processing cost theories. Second, the interaction term between COMP and ATTN was positive and statistically significant (p < 0.05). Marginal effect analysis revealed that the negative slope of complexity on returns flattens as social media attention increases. For firms in the highest attention quartile, the adverse effect of complexity becomes statistically indistinguishable from zero, demonstrating that high levels of digital attention can effectively neutralize the information processing barrier created by complex disclosures. Notably, the direct effect of social media attention alone on returns was insignificant, highlighting that its primary role is moderating rather than directly price-informative. Robustness checks using alternative windows, volume measures (CAV), different complexity specifications, and subsample analyses consistently reaffirmed the core results. Subsample analysis showed that the moderating effect of attention was stronger for firms with lower institutional ownership, where retail investors predominate.



Discussion and Implications: The findings offer substantial contributions to theory and practice. Theoretically, the study extends limited attention theory to the digital age within an emerging market context, demonstrating that social media attention acts as a critical moderating variable capable of mitigating market inefficiencies stemming from information complexity. It bridges the literature on formal financial reporting with informal information diffusion through digital networks. It introduces a theoretical distinction between "mere attention" and "quality information processing," evidenced by the insignificant direct effect of attention versus its significant interactive effect with complexity. Methodologically, the research pioneers the use of Persian social media data and NLP techniques in accounting and finance research. Practically, the findings carry important implications. For regulators like the Securities and Exchange Organization of Iran, the evidence underscores the need for policies promoting simplification and readability in mandatory disclosures, such as setting maximum limits for report length or minimum readability scores. Regulators could establish "attention monitor" systems to identify firms experiencing attention deficits during critical disclosure periods. For corporate managers, the results highlight the strategic importance of active investor relations in the digital sphere; proactive engagement on social media—publishing simplified management summaries or hosting online Q&A sessions—can ensure complex financial information is effectively communicated. For retail investors, the study serves as a caution about cognitive biases and suggests consulting credible informal channels when confronting complex reports. For auditors, the findings emphasize considering "understandability" as a practical objective during financial reporting consultations.



Limitations and Future Research Directions: The study acknowledges several limitations. First, data collection was limited to Persian Twitter; future studies could incorporate other platforms like Instagram and Telegram. Second, attention was measured quantitatively (post counts); future research could employ advanced NLP techniques to analyze content quality, sentiment, and user influence, distinguishing between "productive" and "superficial" attention. Third, the focus was solely on annual reports; future studies could examine quarterly reports, earnings announcements, or event-based disclosures. Fourth, despite advanced econometric methods, the observational data precludes definitive causal claims; mixed-method approaches could provide deeper insights. Finally, cross-country comparative studies could explore how institutional differences shape the relationship between disclosure complexity, attention, and market reactions.



Conclusion: This research establishes that the efficiency of the Iranian capital market in incorporating complex financial information is not determined by disclosure complexity alone but is fundamentally contingent upon the level of investor attention it garners in the digital ecosystem. It provides compelling evidence that social media activity can function as a societal corrective to cognitive limitations, enhancing price discovery. The study advocates for an integrated perspective in market regulation and corporate strategy that simultaneously addresses the quality of formal disclosures and the dynamics of informal digital communication channels.

Abstract 1. Introduction

In an increasingly uncertain and competitive economic environment, firms require appropriate financial policies to maintain their competitive position, respond to unexpected changes, and exploit investment opportunities. Financial flexibility is therefore an important financial characteristic because it enables firms to preserve financing capacity and respond to unforeseen financial needs. Tax payments, however, represent a significant cash outflow and may reduce the resources available for investment, debt management, and other financial commitments. Consequently, managers may employ tax planning strategies, including aggressive tax reporting, to reduce or defer tax payments and preserve financial resources. Aggressive tax reporting can therefore have a direct implication for financial flexibility. By lowering the current tax burden, firms may retain additional cash and increase their ability to finance operations and investment opportunities internally. Nevertheless, excessive tax aggressiveness may expose firms to tax penalties, regulatory scrutiny, reputational risks, and agency conflicts. In this regard, audit committees constitute an important internal corporate governance mechanism. Their independence, financial expertise, gender diversity, size, and meeting frequency may enhance monitoring over financial and tax-related decisions. A high-quality audit committee may therefore constrain excessively aggressive tax strategies and modify their effects on firms’ financial flexibility. The present study contributes to this literature by simultaneously examining aggressive tax reporting quality, financial flexibility, and audit committee characteristics quality within the institutional setting of the Tehran Stock Exchange.

2. Methodology

The research is applied in terms of purpose, ex post facto in terms of temporal design, and descriptive-correlational in terms of nature. The statistical population consists of companies listed on the Tehran Stock Exchange during 1392–1402 (2013–2023). Based on the specified sampling criteria, 147 companies were selected, resulting in 1,617 firm-year observations. Required data were extracted from the Codal comprehensive database, Rahavard Novin, companies’ financial statements, and their accompanying explanatory notes. Excel 2013 and EViews 9 were employed for data preparation and statistical analysis.

Because financial flexibility is operationalized as a binary variable, panel logistic regression estimated by the maximum likelihood method was employed. Financial flexibility was measured based on the firm’s excess debt capacity. A firm was classified as financially flexible when it exhibited excess debt capacity for at least two consecutive years. Aggressive tax reporting quality was constructed using four indicators: the difference between declared and final tax, the difference between the statutory and effective tax rates, the difference between the ratio of taxable income to sales and the industry profitability ratio, and earnings management aimed at income minimization. These four indicators were aggregated to construct the aggressive tax reporting quality index.

Audit committee characteristics quality was measured using five dimensions: audit committee independence, gender diversity, committee size, meeting frequency, and members’ financial expertise. These components were combined into an overall audit committee characteristics quality index. The regression models also controlled for audit quality, fixed-asset investment intensity, inventory investment intensity, return on assets, and corporate social responsibility.

3. Results

The descriptive findings indicate that the mean aggressive tax reporting quality index was 0.396, while its median was 0.374. The mean audit committee characteristics quality was 0.643, with a median of 0.495. Furthermore, 1,186 observations, equivalent to 73.35 percent of the sample, were classified as financially flexible, whereas 431 observations, or 26.65 percent, were classified as non-flexible.

The results of the first hypothesis indicate that aggressive tax reporting quality has a positive and statistically significant effect on financial flexibility. The estimated coefficient for aggressive tax reporting quality was 0.284, with a z-statistic of 3.50 and a significance level of 0.0005. Accordingly, the first hypothesis was supported. This finding suggests that more aggressive tax reporting can contribute to greater financial flexibility, primarily by reducing or postponing tax-related cash outflows and preserving financial resources within the firm. The second hypothesis examined the moderating role of audit committee characteristics quality. The interaction coefficient between aggressive tax reporting quality and audit committee characteristics quality was 0.118 and statistically significant, with a z-statistic of 2.31 and a significance level of 0.0207. Although the interaction term is positive, comparison of the interaction effect with the direct coefficient of aggressive tax reporting indicates that stronger audit committee characteristics reduce the magnitude of the positive effect of aggressive tax reporting on financial flexibility. Thus, the second hypothesis was supported. The second model also produced a McFadden R² of 0.268, compared with 0.214 for the first model.

4. Discussion

The positive relationship between aggressive tax reporting quality and financial flexibility can be explained by the cash-flow consequences of taxation. When firms reduce or defer tax payments through aggressive tax planning and reporting practices, more cash remains available for operating requirements, debt obligations, and investment opportunities. Therefore, aggressive tax reporting may improve short-term financial flexibility by increasing internally available financial resources. However, this benefit should not be interpreted as an absence of risk because excessive tax aggressiveness can generate tax disputes, penalties, reputational costs, and other future financial consequences. The findings also demonstrate the importance of audit committee characteristics as a corporate governance mechanism. An audit committee with greater independence, financial expertise, appropriate size, gender diversity, and more frequent meetings can exercise stronger oversight over financial and tax decisions. Such monitoring can constrain excessive tax aggressiveness and prevent management from relying excessively on tax strategies merely to obtain short-term liquidity benefits. Consequently, although aggressive tax reporting may improve financial flexibility, effective audit committee oversight can moderate and reduce the strength of this relationship. The findings are consistent with the broader evidence discussed in the study concerning the role of corporate governance and audit committee characteristics in constraining aggressive tax behavior.

5. Conclusion

The study concludes that aggressive tax reporting quality is positively and significantly associated with financial flexibility among firms listed on the Tehran Stock Exchange. This finding indicates that tax-related strategies capable of reducing or postponing cash tax payments can provide firms with additional financial resources and thereby enhance their ability to respond to financial needs. At the same time, the results confirm that audit committee characteristics quality significantly moderates this relationship. Higher-quality audit committees can limit excessive reliance on aggressive tax strategies and establish a balance between the short-term financial benefits of tax reduction and the long-term requirements of transparency, accountability, and tax-risk management. From a managerial perspective, firms should not evaluate tax strategies solely on the basis of short-term tax savings. Instead, managers should consider their effects on liquidity, financing capacity, borrowing capacity, tax risk, and long-term financial flexibility. Boards of directors should also give greater attention to the independence, financial and accounting expertise, professional experience, gender diversity, and monitoring capacity of audit committee members. Strengthening the audit committee and enhancing coordination among financial management, internal audit, and the audit committee can improve oversight of tax policies and help ensure that aggressive tax strategies are implemented within an appropriate risk-management framework. Overall, the evidence suggests that tax reporting behavior is not merely a tax-related issue but an important component of corporate financial policy and corporate governance.

Abstract This paper aims to present a model of individual and macro-level factors affecting tax accounting quality. In terms of research directions, this paper is a combination of applied and developmental studies. In this research, 19 experts were used as the study sample. In order to conduct this research, first, 59 indicators were identified in the form of two components, individual and macro-level factors, using the content analysis approach. In the second part, with a survey of experts and the fuzzy screening method, important and effective indicators were determined. At this stage, 38 indicators were selected. The results of the analyses carried out in the structural-interpretive modeling method indicated that the indicators of individual and macro-level factors were placed at five and one levels, respectively. Also, the results obtained from the fuzzy network analysis method indicate that, from the point of view of experts, the most important indicators are the "financial manager gender" and the "corruption level" index in the case of macro-level factors.

Introduction

In recent years, increased regulatory focus on financial reporting related to income tax has drawn significant attention to the quality of tax accounting information disclosed in companies’ annual reports. This issue has become particularly pronounced in Iran due to economic sanctions, which have compelled the country to reduce its budget dependence on oil revenues and enhance tax revenue collection through improved transparency and tax justice. Consequently, the quality of tax accounting has emerged as a critical and timely concern in Iran, with various groups and organizations striving to find effective solutions to improve the quality and transparency of tax accounting information.

Literature Review

A comprehensive review of domestic and international literature on taxation and the quality of tax accounting identified a total of 59 potential individual-level and macro-level factors influencing the quality of tax accounting in Iranian companies. These factors were extracted through content analysis of prior studies, highlighting a wide range of indicators that could potentially affect tax accounting quality. However, the applicability and significance of these indicators in the specific context of Iran remain subject to expert evaluation.

Methodology

This study aimed to model and rank the individual and macro-level factors affecting tax accounting quality in Iran. Initially, 59 indicators were identified from the literature review and content analysis. Subsequently, a fuzzy screening technique was employed, along with expert opinions, to refine and select the most relevant 38 indicators. The interrelationships and hierarchical levels of these indicators were then explored using the Interpretive Structural Modeling (ISM) technique. Network analysis was also utilized to determine the relative importance and influence of each indicator.

Results

The findings revealed that all 19 macro-level indicators operate at the same hierarchical level, directly influencing each other. In contrast, individual-level indicators were classified into five hierarchical levels:

Level 1: Tax accounting understanding, loss aversion threshold motivation, earnings decline avoidance motivation, and tax specialists.
Level 2: Tax information asymmetry, earnings management forecasting, financial manager competence, and managerial conservatism.
Level 3: Management judgment, managerial optimism, managerial analytical power, financial confidentiality, and managerial reputation.
Level 4: Behavioral cultural intelligence, and ethical sensitivity.
Level 5: Gender of the financial manager, gender of the CEO, financial manager experience, and managerial capability.

Indicators at Level 5, considered foundational, exert the greatest influence on indicators in higher levels, while those at Level 1 are most influenced by other factors. The study identified “gender of the financial manager” as the most influential individual factor for enhancing tax accounting quality, consistent with previous research emphasizing the positive role of female managers in financial reporting transparency and earnings quality. Among macro-level indicators, the societal corruption level was identified as the most critical factor affecting tax accounting quality, followed by tax culture and modern technologies such as big data analytics.

Discussion

The hierarchical model indicates that managing foundational individual factors such as managerial gender, experience, and capability can significantly enhance tax accounting quality. The strong influence of macro-level factors, particularly corruption, suggests that broader socio-economic reforms are essential to improve tax accounting standards. Furthermore, the differing importance assigned by experts to various factors reflects the contextual specificity of Iran’s economic and regulatory environment. The findings align with prior international studies but also highlight unique local considerations that shape tax accounting practices.

Conclusion

This study offers a structured framework to understand and prioritize the individual and macro-level determinants of tax accounting quality in Iran. Policymakers and practitioners are advised to focus on managing both micro-level managerial attributes and macro-level environmental factors to promote transparency and accuracy in tax accounting. Future research could extend this model by examining the interplay between tax accounting quality and variables such as board characteristics, ownership structure, financial information quality, and institutional investors. Limitations include the reliance on expert opinion and questionnaire methods, which should be considered when applying the findings.

Abstract The present study aims to investigate the impact of financial health indicators on the amount of loans received by customers from banks, considering the role of competition in the industry. The statistical population consists of banks listed on the Tehran Stock Exchange, with the study period ranging from 2014 to 2023. After applying systematic exclusion criteria, 10 banks were included as the final sample. Ultimately, twelve hypotheses were formulated and tested using multiple linear regression analysis based on pooled data in EViews 12. The results of testing the research hypotheses indicated that capital adequacy, asset quality, profitability status, and liquidity quality have a direct and significant impact on the loans received by customers from banks. However, market risk sensitivity has an inverse and significant impact on the loans received by customers from banks, while management quality has no effect on the loans received by customers. Competition in the banking industry influences the relationship between financial health indicators and the amount of loans received, except for liquidity quality and market risk sensitivity. Introduction Banks play a vital role in the economy by providing credit and loans to individuals, institutions, and businesses—an essential element for economic growth and stability. Bank loans enable individuals and firms to finance various objectives such as purchasing homes, starting or expanding businesses, and investing in education. Access to credit is particularly crucial for businesses, allowing them to fund operating expenses, maintain inventories, and expand their workforce. Without access to bank loans, many firms face obstacles to growth or even survival, limiting overall employment and economic development. For individuals, credit provides opportunities for major life events such as buying homes or covering educational expenses, thereby contributing to long-term financial security and well-being. To assess the health and stability of banks, various tools have been developed. The CAMELS rating system is a vital instrument used by financial experts and researchers to evaluate the financial soundness and stability of banks. This model assesses banks based on six key components: Capital Adequacy, Asset Quality, Management Quality, Earnings, Liquidity, and Sensitivity to Market Risk. Such an evaluation can affect banks’ credit growth, since it directly influences their lending capacity and attractiveness to investors. Banks with strong financial health ratings generally enjoy better access to capital markets, enabling them to extend greater credit to customers. A high capital adequacy rating ensures sufficient capital reserves to absorb potential losses, supporting lending operations. High asset quality indicates a relatively low-risk loan portfolio, increasing the bank’s willingness to provide credit. Moreover, banks with strong management and earnings are better equipped to face economic challenges and maintain sustainable credit expansion. Hypotheses H1. Capital adequacy affects the amount of loans received by bank customers. H2. Asset quality affects the amount of loans received by bank customers. H3. Management quality affects the amount of loans received by bank customers. H4. Profitability affects the amount of loans received by bank customers. H5. Liquidity quality affects the amount of loans received by bank customers. H6. Sensitivity to market risk affects the amount of loans received by bank customers. H7. Competition in the banking industry affects the relationship between capital adequacy and customer loans. H8. Competition in the banking industry affects the relationship between asset quality and customer loans. H9. Competition in the banking industry affects the relationship between management quality and customer loans. H10. Competition in the banking industry affects the relationship between profitability and customer loans. H11. Competition in the banking industry affects the relationship between liquidity quality and customer loans. H12. Competition in the banking industry affects the relationship between sensitivity to market risk and customer loans. Research Methodology This is an applied study and methodologically a causal-correlational (ex post facto) study. The statistical population consists of all banks listed on the Tehran Stock Exchange, covering the period from 2014 to 2023. The systematic elimination sampling method was employed to arrive at the final sample of 10 banks. Data analysis was performed using panel data methodology in EViews 12 to test the research hypotheses. Findings The results reveal that capital adequacy, asset quality, profitability, and liquidity have a direct and significant impact on the amount of loans received by bank customers. However, sensitivity to market risk has a negative and significant effect, while management quality shows no significant relationship. Moreover, competition in the banking industry affects the relationship between financial health indicators and the amount of loans received, except for liquidity and sensitivity to market risk, where the effect is insignificant. Discussion & Conclusion The findings suggest that banks’ financial soundness, particularly in terms of capital adequacy, asset quality, profitability, and liquidity, has a significant positive influence on their ability to extend more loans to customers. This underscores the importance of financial stability and robustness in banks in effectively contributing to national economic performance. Conversely, sensitivity to market risk exhibits a significant negative relationship, reflecting banks’ caution under high-risk conditions. In contrast, management quality alone does not significantly affect the volume of loans. Interaction analysis also unveils complex dynamics: competition amplifies the influence of capital adequacy and profitability on bank lending, indicating that healthier banks may compete more actively by offering greater credit to attract customers. Meanwhile, competition combined with management quality shows a negative effect on loan levels, and interactions with asset quality, liquidity, and market risk sensitivity remain insignificant.      

Abstract Reducing undesirable behavioral biases of managers and investors is one of the basic challenges in financial markets that can have significant effects on the quality of decisions and the efficiency of capital markets. Behavioral biases such as over-optimism, fear of loss, and emotional influences can lead to irrational decisions and market anomalies that ultimately negatively affect economic performance and financial markets. Although behavioral biases are not always detrimental for instance, optimism, which constitutes a component of overconfidence bias, can have positive outcomes for firms with optimistic managers, such as improving financial performance and enhancing earnings predictability. the literature predominantly emphasizes their adverse effects. In this research, the aim is to identify the factors affecting the behavioral biases of managers and investors. using a qualitative grounded theory approach under an interpretive paradigm The statistical population in this research includes 15 accounting and financial experts who were selected in a purposeful (judgmental) and (snowball) manner and were interviewed with a semi-structured interview tool until saturation was reached. The output of this stage included 10 secondary themes, which led to 4 organizing themes of "motivational factors", "personality factors", "factors related to self-confidence and competence" and "cognitive and attitudinal factors" for the theme of behavioral biases. A comparative analysis of the data indicated that while some factors affecting the reduction of behavioral biases are shared between managers and investors, their origins and intensities differ. For managers, strategic decision pressures, accountability responsibilities, and managerial overconfidence were identified as major sources of bias, whereas for investors, loss aversion, herding behavior, and framing effects were more pronounced. Accordingly, the study suggests that educational and policy interventions aimed at reducing behavioral biases should be designed separately for these two groups to enhance their effectiveness.

Introduction

Behavioral biases represent fundamental challenges in financial markets, significantly affecting decision-making quality and capital market efficiency. These biases, including overconfidence, loss aversion, and emotional influences, lead to irrational decisions and market anomalies that negatively impact economic performance. While behavioral finance has grown substantially as a field combining psychology and social sciences, a significant gap remains in understanding the specific mechanisms through which these biases can be reduced, particularly in the Iranian context. Most existing research has focused on identifying biases rather than developing practical frameworks for their mitigation. Furthermore, while managers and investors both experience behavioral biases, the contextual differences in how these biases manifest remain underexplored. Managers operate within organizational governance frameworks with stakeholder accountability, while investors are primarily influenced by market volatility and public information. This research employs a qualitative grounded theory approach to identify and explain factors influencing the reduction of behavioral biases among both groups in Iran’s capital market.

Theoretical Framework

Behavioral finance challenges traditional assumptions of rational actors with complete information, emphasizing that financial decisions are influenced by emotions, biases, and cognitive errors. Since the 1980s, particularly following Kahneman and Tversky’s Prospect Theory, the field has demonstrated fundamental shifts in understanding investor behavior. Behavioral biases fall into two categories: cognitive biases (confirmation bias, anchoring) are more amenable to correction through education and structured feedback, while emotional biases require regulation of decision-making conditions and emotional responses. While the literature has focused on individual investor biases, managerial biases such as CEO overconfidence and loss aversion directly impact corporate decisions. Research shows that although biases in managers and investors occur in different contexts, common psychological foundations influence both groups. Managers primarily suffer from biases under organizational pressures and stakeholder expectations, while investors are more influenced by market volatility and herding behavior.

Research Questions

The main research question is: What factors lead to the reduction of behavioral biases in managers and investors in Iran’s capital market?
Sub-questions include:

What motivational factors influence the reduction of behavioral biases in managers and investors?
What cognitive and attitudinal factors play a role in reducing behavioral biases?
What personality traits can help reduce behavioral biases?
How do self-confidence and individual competencies affect the reduction of behavioral biases?
What differences exist in the origin, mechanism, and intensity of behavioral biases between managers and investors?
Methodology

This exploratory qualitative research employed an interpretive paradigm and grounded theory methodology to understand the subjective experiences of managers and investors. Semi-structured interviews lasting 45-60 minutes were conducted with 15 experts (7 managers and 8 active investors) selected through purposive and snowball sampling until theoretical saturation was reached. Data were analyzed using Braun and Clarke’s (2006) thematic analysis with MAXQDA 2020. Initially, 98 primary codes were extracted and reduced to 54 final codes, organized into 10 sub-themes, and ultimately grouped into 4 organizing themes. Independent coding by a domain expert achieved 87% agreement, confirming data reliability. Data from both groups were analyzed separately, then compared to identify comprehensive patterns.

Findings

Analysis revealed four main organizing themes: motivational factors, personality factors, self-confidence and competence factors, and cognitive and attitudinal factors.
Motivational Factors: Goal-oriented motivations enable better rational decision-making. Among managers, motivation to maintain professional credibility deterred hasty decisions. Among investors, motivation for short-term returns could both lead to bias and, with proper education, result in financial discipline.
Cognitive and Attitudinal Factors: Evidence-based attitudes help prevent cognitive biases. Managers’ cognitive biases typically arises from incomplete internal data and excessive emphasis on performance indicators. Investors showed weakness in understanding risk-return ratios and susceptibility to news and social networks. Attitudes toward markets and acceptance of uncertainty were key components in reducing biases.
Personality Factors: Traits like adaptability, neuroticism, and extraversion significantly influence risk-taking. Managers with higher extraversion and adaptability showed better cognitive resistance to decision pressures and less confirmation bias. Investors with high neuroticism showed a greater tendency toward herding behavior during market volatility, consistent with previous research findings.
Self-Confidence and Competence: Financial literacy and accurate data analysis help prevent incorrect decisions. Among managers, excessive self-confidence stems from experience and leads to an “illusion of control.” Among investors, it results from incorrect market analysis, misinterpretation, or past successes. Behavioral training and continuous feedback can moderate this bias in both groups.
Comparative analysis revealed that while the four main themes are common, their manifestation mechanisms differ. Manager-specific themes included strategic decision pressure, illusion of control, and organizational accountability. Investor themes of loss aversion, herding behavior, and framing effects were more prominent. Common themes included financial literacy, emotional intelligence, and structured feedback, which were significantly associated with reduced behavioral biases. Results indicate that factors affecting bias reduction have a two-level structure: cognitive-emotional (individual) and structural-organizational (environmental).

Discussion and Conclusion

Findings indicate that motivational, cognitive, attitudinal, and personality factors play important roles in bias emergence and reduction. Short-term motivations can lead to biases like overconfidence or loss aversion, necessitating a focus on long-term goals and aligning rewards with actual results. Accurate economic analysis and business intelligence tools reduce confirmation bias effects. Personality traits such as conscientiousness, adaptability, and emotional control prove effective in complex decision-making. Emotional intelligence’s role in managing emotions during market fluctuations is critical for controlling biases.
Financial literacy and managed self-confidence are crucial. Individuals with high financial literacy can better analyze market information and avoid emotional decisions. Strengthening financial literacy through simulation-based training is among the most effective tools for correcting behavioral biases. Structured feedback and organizational learning through transparent decision-making environments help reduce errors in both groups. Excessive managerial self-confidence and market-oriented investor emotions are the two main sources of behavioral biases requiring specific educational interventions.
Comparative analysis between managers and investors revealed that although the overall structure of influential factors is similar, their origin, mechanism, and impact intensity differ. For managers, strategic decision pressure, accountability requirements, and professional credibility maintenance are primary sources of cognitive and emotional biases. Among investors, market emotions, loss aversion, and herding behavior play more prominent roles in creating behavioral deviations. This fundamental difference highlights the necessity of developing separate educational programs and corrective policies for each group.

Practical Implications

For Managers: Develop financial analysis and emotion management training programs; create an organizational culture based on long-term goal setting; implement balanced reward systems that avoid short-term decision encouragement; utilize group consultation to reduce individual biases.
For Investors: Increase financial literacy through specialized training; use data-based analytical tools; strengthen emotional intelligence to control emotional reactions to market fluctuations; set specific investment goals with clear time horizons.
For Regulatory Bodies: Design public education programs in behavioral finance; create warning tools for identifying herding behaviors; strengthen market information transparency; develop AI-based decision support systems.
Creating an organizational culture based on long-term goal setting, decision transparency, and reliance on data-driven analyses is a key step in reducing behavioral biases and increasing capital market efficiency.

Limitations and Future Research

This research included 15 experts, which was sufficient for theoretical saturation but requires caution in generalizing the results. The qualitative approach facilitates a deeper understanding of the phenomenon but does not allow quantitative testing of relationships. Future research could employ quantitative approaches to test the presented conceptual model and measure each identified factor’s impact on reducing behavioral biases. Examining variables such as organizational culture, financial experience, and learning orientation in relation to managerial biases could provide new research avenues.
 
 
 

Abstract In recent years, non-financial disclosure has become increasingly important for stakeholders in making informed decisions. Non-financial disclosures by companies, such as Environmental, Social, and Governance (ESG) information disclosure, can be influenced by the characteristics of directors and other corporate governance mechanisms. Accordingly, the purpose of this research is to investigate the impact of board gender diversity on ESG disclosure, with a focus on the moderating role of audit committee characteristics. In this study, data from 78 companies listed on the Tehran Stock Exchange from 2013 to 2024 (858 firm-years) were collected, and the research hypotheses were tested using pooled data and multiple regression analysis. The research findings indicate that gender diversity on the board of directors has a positive and significant impact on ESG disclosure. In other words, an increase in the presence of women on the board is associated with a corresponding increase in the ESG disclosure index. The research findings also indicated that the independence and financial expertise of the audit committee moderate the relationship between board gender diversity and ESG disclosure; however, the size of the audit committee members does not have a moderating effect on this relationship. This study offers valuable insights for managers and investors to evaluate the impact of gender diversity on the boards of directors and audit committees in ESG disclosure, and to inform their decision-making. Furthermore, legislators and policymakers can revise corporate governance mechanisms to promote greater inclusion of women not only on company boards but also in sub-committees to protect the rights of stakeholders better. The findings of the present study indicate a low number of female board members in companies listed on the Tehran Stock Exchange (9.2% of observations), which may affect the research results.

Introduction

In 2015, the United Nations introduced the Sustainable Development Goals to address poverty, environmental degradation, inequality, and justice, with the 2030 Agenda promoting sustainability for all stakeholders and guiding companies to shift from profit maximization to sustainable growth. Non-financial disclosures related to environmental, social, and governance (ESG) factors have gained strategic importance for stakeholders, including governments, investors, and employees, in decision-making processes. These disclosures address environmental concerns (e.g., green technologies), social issues (e.g., human rights), and governance matters (e.g., board independence). Agency and stakeholder theories emphasize the need for long-term, sustainable perspectives, though some view corporate social responsibility activities as a source of agency problems. In contrast, others see them as a competitive advantage. The board of directors, particularly in terms of its gender diversity, plays a critical role in enhancing ESG disclosures and stakeholder accountability, despite conflicting research findings. The audit committee strengthens transparency and accuracy in ESG reporting. This study examines how board gender diversity, moderated by audit committee characteristics, influences ESG disclosures, thereby contributing to the literature, particularly in the unique political context of Iran.
Research Question: What is the impact of board gender diversity on environmental, social, and governance (ESG) disclosures, with the moderating role of audit committee characteristics?

Literature Review

Environmental, Social, and Governance (ESG) issues have gained significant importance for companies due to current competitive requirements and stakeholder attention. By disclosing ESG information, companies aim to reduce agency problems and positively impact capital markets. Since ESG disclosure is often voluntary, studying the factors influencing the improvement of its quality is crucial. Research indicates that corporate governance factors, such as the board of directors and audit committees (especially in the context of agency theory), can play a significant role in reducing information asymmetry and conflicts of interest in ESG information disclosure.
Based on the theoretical foundation and prior research, the following hypotheses are formulated:
Hypothesis 1: Gender diversity on the board of directors has a positive and significant impact on ESG disclosure.
Hypothesis 2: The size of the audit committee moderates the relationship between gender diversity on the board of directors and ESG disclosure.
Hypothesis 3: The independence of audit committee members moderates the relationship between gender diversity on the board of directors and ESG disclosure.
Hypothesis 4: The financial expertise of audit committee members moderates the relationship between gender diversity on the board of directors and ESG disclosure.

Methodology

This applied study utilizes data from audited financial statements, explanatory notes, audit committee reports, and board activity reports submitted to the general assembly of shareholders of firms listed on the Tehran Stock Exchange, utilizing the CODAL system. The data were analyzed with EViews software, and multiple regression analysis was applied to test the research hypotheses. The study encompasses all firms listed on the Tehran Stock Exchange over the period from 2013 to 2023.

Results

The research findings indicate that gender diversity on the board of directors has a positive and significant impact on ESG disclosure. In other words, an increase in the presence of women on the board is associated with a corresponding increase in the ESG disclosure index. The research findings also indicated that the independence and financial expertise of the audit committee moderate the relationship between board gender diversity and ESG disclosure; however, the size of the audit committee members does not have a moderating effect on this relationship..

Conclusion

This study offers valuable insights for managers and investors to evaluate the impact of gender diversity on the boards of directors and audit committees in ESG disclosure, and to inform their decision-making. Furthermore, legislators and policymakers can revise corporate governance mechanisms to promote the greater inclusion of women not only on company boards but also in subcommittees, thereby better protecting the rights of stakeholders. The findings of the present study indicate a low number of female board members in companies listed on the Tehran Stock Exchange (9.2% of observations), which may affect the research results

Abstract This study, through a paradigmatic phenomenological approach, seeks to present a model for understanding the influential role of Ponzi schemes in the formation of opportunistic accounting practices. In the first stage, an attempt was made to identify the propositional themes of the Ponzi phenomenon in the formation of opportunistic accounting practices through interviews with 20 participants with lived experience, using open-ended questions and codes derived from the Ponzi phenomenon. Subsequently, by creating a researcher-developed checklist rated on the "+8," "0," and "-8" scales, the third stage of data collection sought to classify the propositions into more general conceptual categories, based on focus group scores, in order to develop a paradigmatic model through the categorization of propositional themes. The results of the study, after identifying 371 open codes from the 20 interviews conducted, indicate the identification of 50 propositional themes in the form of a researcher-developed scoring checklist. By assigning focal points to each participant within the specified evaluation panels, the analysis ultimately led to the presentation of a paradigmatic model consisting of 10 categories across five dimensions. Introduction The majority of research on the causes and consequences of accounting fraud has been conducted by comparing fraudulent companies to other companies, and the results presented in this regard, although important, have not been able to significantly reduce their effects on investment perceptions in the market. In other words, in the study of fraudulent companies, the relationship between accounting violations and business and legal anomalies, such as long-term appointment of managers, lawsuits, and declining stock prices, is, to a large extent, evident, one possible consequence of which is the emergence of financial distortions through accounting tools that have been repeatedly challenged in prior research. In contrast to these studies, the present study focuses on one of the most emerging opportunistic processes in companies, which can also be implemented through accounting procedures in the contemporary business environment. Literature Review The Ponzi scheme, one of the most well-known concepts in the global financial economy, refers to a planned method of fraud and distortion in which income payable to previous investors is generated by attracting capital from new investors. Companies that take advantage of this phenomenon for greater profits secure their returns solely from these intermediary financial flows and, without engaging in any activity that produces real income or profit, often obtain benefits by luring investors. The historical development of this scheme indicates that the use of such methods of distortion and fraud has a long history, dating back to the 1920s and the widespread fraud of Charles Ponzi, who was able to victimize Italian immigrants for his personal gain. Although a review of this historical process shows that analyzing investment experiences and financial crises provides useful insights in this area, today's companies often continue to exploit the potential of this method for profit-seeking purposes, particularly in light of weaknesses in regulatory mechanisms. Methodology Research conducted with the aim of ​​paradigm building should be categorized as studies that seek abstractions from the context under study. This is because past research likely did not fully consider the external and internal influences on a cognitive phenomenon, which may be subjectivized. Therefore, presenting a paradigmatic model helps to understand the phenomenon within the context of the study. This section describes the nature of the methodology of the present study based on the principles of paradigmatic phenomenology. Accordingly, during the interview process with experienced actors in the context of the study, the contexts that can influence the phenomenon in line with the five paradigmatic conditions, causal conditions, contextual, intervening, strategies, and consequences, are first identified, so that, through open coding, the subsequent steps can be taken to develop the final paradigmatic model. Therefore, the study employs two primary tools: (1) interviews to explore the context of the phenomenon based on open coding, and (2) checklist scoring scales to evaluate the emerged contexts and classify them into paradigmatic categories. In these explanations, the present study can be described as exploratory in terms of its purpose, which, given the novelty of the Ponzi phenomenon, is justified in identifying the influential contexts emphasized in the first research question. Conducting interviews with participants who have knowledge and experiential expertise, like puzzle pieces, reveals scientific unknowns of the phenomenon under study. In terms of outcomes, from another methodological perspective, the present study can also be considered developmental, as it addresses the lack of reliable cognitive approaches to the Ponzi phenomenon in accounting procedures and contributes to a clearer ​​understanding of financial distortions and frauds. Finally, in terms of data collection, this study is classified as qualitative research with an inductive approach. Result This study began by selecting 20 participants with lived experience to identify the propositional themes that, through interviews with open-ended questions and codes derived from the Ponzi phenomenon, indicate the areas of this phenomenon that can influence the formation of opportunistic accounting practices. From the 20 interviews conducted, 371 open codes were identified, which were grouped into 50 propositional themes. These themes were evaluated using a researcher-developed scoring checklist within focus groups, which ultimately informed the final paradigmatic model. Discussion Paradigmatic phenomenology is recognized as a sociological approach within both theoretical and applied fields, drawing on areas of humanities knowledge where, due to the novelty of the central phenomenon, there is no coherent understanding within the context of the study. Accordingly, this study employs paradigmatic phenomenology with the aim of exploring the ontology of the Ponzi phenomenon in the formation of opportunistic accounting procedures in commercial companies. This phenomenon, as one of the domains of financial distortion and fraud in commercial companies, influences the emergence of opportunistic accounting as a hidden tool used by many companies in competitive financial markets. Due to its novelty, it lacks sufficient cognitive coherence in existing literature. For this reason, by following the analytical stages of the paradigmatic phenomenological process, the study aims to develop a model as the ultimate goal, in order to explore the influential aspects of the Ponzi phenomenon in the emergence of opportunistic accounting practices. Conclusion The results obtained from the final paradigmatic model regarding the ontology of the Ponzi phenomenon in the emergence of opportunistic accounting practices provide a foundation for the conceptual and abstract understanding of this phenomenon within the context of commercial companies. The lack of previous research on the theoretical and applied understanding of the existential philosophy of the Ponzi phenomenon has resulted in the connection between this phenomenon and accounting practices, as its implementation tool at the company level, being largely overlooked. For this reason, exploring the various dimensions of the occurrence of such a problem in accounting practices was among the main objectives of this study. This framework demonstrates how companies involved in implementing the Ponzi phenomenon, or so-called scammers (primary project designers), based on the profit obtained from attracting secondary investors, create an opaque financial cycle to provide the expected returns for primary investors. In doing so, they opportunistically pursue their interests using tools such as accounting, often within a set of inefficient market conditions. Introduction The majority of research on the causes and consequences of accounting fraud has been conducted by comparing fraudulent companies to other companies, and the results presented in this regard, although important, have not been able to significantly reduce their effects on investment perceptions in the market. In other words, in the study of fraudulent companies, the relationship between accounting violations and business and legal anomalies, such as long-term appointment of managers, lawsuits, and declining stock prices, is, to a large extent, evident, one possible consequence of which is the emergence of financial distortions through accounting tools that have been repeatedly challenged in prior research. In contrast to these studies, the present study focuses on one of the most emerging opportunistic processes in companies, which can also be implemented through accounting procedures in the contemporary business environment. Literature Review The Ponzi scheme, one of the most well-known concepts in the global financial economy, refers to a planned method of fraud and distortion in which income payable to previous investors is generated by attracting capital from new investors. Companies that take advantage of this phenomenon for greater profits secure their returns solely from these intermediary financial flows and, without engaging in any activity that produces real income or profit, often obtain benefits by luring investors. The historical development of this scheme indicates that the use of such methods of distortion and fraud has a long history, dating back to the 1920s and the widespread fraud of Charles Ponzi, who was able to victimize Italian immigrants for his personal gain. Although a review of this historical process shows that analyzing investment experiences and financial crises provides useful insights in this area, today's companies often continue to exploit the potential of this method for profit-seeking purposes, particularly in light of weaknesses in regulatory mechanisms. Methodology Research conducted with the aim of ​​paradigm building should be categorized as studies that seek abstractions from the context under study. This is because past research likely did not fully consider the external and internal influences on a cognitive phenomenon, which may be subjectivized. Therefore, presenting a paradigmatic model helps to understand the phenomenon within the context of the study. This section describes the nature of the methodology of the present study based on the principles of paradigmatic phenomenology. Accordingly, during the interview process with experienced actors in the context of the study, the contexts that can influence the phenomenon in line with the five paradigmatic conditions, causal conditions, contextual, intervening, strategies, and consequences, are first identified, so that, through open coding, the subsequent steps can be taken to develop the final paradigmatic model. Therefore, the study employs two primary tools: (1) interviews to explore the context of the phenomenon based on open coding, and (2) checklist scoring scales to evaluate the emerged contexts and classify them into paradigmatic categories. In these explanations, the present study can be described as exploratory in terms of its purpose, which, given the novelty of the Ponzi phenomenon, is justified in identifying the influential contexts emphasized in the first research question. Conducting interviews with participants who have knowledge and experiential expertise, like puzzle pieces, reveals scientific unknowns of the phenomenon under study. In terms of outcomes, from another methodological perspective, the present study can also be considered developmental, as it addresses the lack of reliable cognitive approaches to the Ponzi phenomenon in accounting procedures and contributes to a clearer ​​understanding of financial distortions and frauds. Finally, in terms of data collection, this study is classified as qualitative research with an inductive approach. Result This study began by selecting 20 participants with lived experience to identify the propositional themes that, through interviews with open-ended questions and codes derived from the Ponzi phenomenon, indicate the areas of this phenomenon that can influence the formation of opportunistic accounting practices. From the 20 interviews conducted, 371 open codes were identified, which were grouped into 50 propositional themes. These themes were evaluated using a researcher-developed scoring checklist within focus groups, which ultimately informed the final paradigmatic model. Discussion Paradigmatic phenomenology is recognized as a sociological approach within both theoretical and applied fields, drawing on areas of humanities knowledge where, due to the novelty of the central phenomenon, there is no coherent understanding within the context of the study. Accordingly, this study employs paradigmatic phenomenology with the aim of exploring the ontology of the Ponzi phenomenon in the formation of opportunistic accounting procedures in commercial companies. This phenomenon, as one of the domains of financial distortion and fraud in commercial companies, influences the emergence of opportunistic accounting as a hidden tool used by many companies in competitive financial markets. Due to its novelty, it lacks sufficient cognitive coherence in existing literature. For this reason, by following the analytical stages of the paradigmatic phenomenological process, the study aims to develop a model as the ultimate goal, in order to explore the influential aspects of the Ponzi phenomenon in the emergence of opportunistic accounting practices. Conclusion The results obtained from the final paradigmatic model regarding the ontology of the Ponzi phenomenon in the emergence of opportunistic accounting practices provide a foundation for the conceptual and abstract understanding of this phenomenon within the context of commercial companies. The lack of previous research on the theoretical and applied understanding of the existential philosophy of the Ponzi phenomenon has resulted in the connection between this phenomenon and accounting practices, as its implementation tool at the company level, being largely overlooked. For this reason, exploring the various dimensions of the occurrence of such a problem in accounting practices was among the main objectives of this study. This framework demonstrates how companies involved in implementing the Ponzi phenomenon, or so-called scammers (primary project designers), based on the profit obtained from attracting secondary investors, create an opaque financial cycle to provide the expected returns for primary investors. In doing so, they opportunistically pursue their interests using tools such as accounting, often within a set of inefficient market conditions.  

Abstract This study investigates the impact of economic sanctions on tax evasion facilitated through Related-Party Transactions (RPTs) in Iran. Utilizing a novel hybrid framework that integrates graph mining, Principal Component Analysis (PCA), and advanced fuzzy metaheuristic optimization, we analyze financial data from 1,780 companies (2016-2020). Graph mining is employed to map and detect suspicious transaction networks, particularly those involving Free Trade Zones (FTZs). A sanctions intensity index is constructed using PCA from 10 macroeconomic variables. The core predictive modeling leverages a Jaguar-optimized Type-3 Sheffer-like Type-4 fuzzy logic system to handle data uncertainty and non-linear relationships. Results indicate that sanctions exacerbate RPT-based tax evasion, increasing its magnitude from 0.389% to 0.414%. The proposed Jaguar model demonstrated superior performance with 98.8% accuracy (MSFE: 0.012), significantly outperforming traditional detection methods. Post-sanctions network topology analysis revealed a marked increase in suspicious clusters and nodes, with prevalent evasion patterns including multi-layer transfer pricing and abnormal profitability in FTZ subsidiaries. This research offers a robust, scalable tool for tax authorities to prioritize audits and enhances the understanding of how macroeconomic shocks influence illicit financial behaviors within corporate networks.

Introduction

Economic sanctions are coercive measures imposed by states to restrict international activities of target nations, offering a lower-risk alternative to military conflict (Cordesman et al., 2011). Iran exemplifies this, facing escalating sanctions that incentivize tax evasion through Related-Party Transactions (RPTs). Under sanctions, firms exploit legal gaps and accrual accounting to manipulate profits (Abeysekera, 2003; Arabi et al., 2018), transforming Iran’s financial market into a complex network (Soleimani et al., 2014). Traditional analytical methods fail against such complexity, while metaheuristic models excel. Graph mining uniquely uncovers hidden dimensions in sanctioned markets by analyzing network structures and variable relationships (Hu et al., 2022), especially where information asymmetry impedes tax authorities (Iacovacci & Lacasa, 2019; Yang & Xu, 2024).RPTs occur in nested networks with non-linear relationships (e.g., shared boards, cross-ownership) (Ruan et al., 2019). Sanctions amplify complexity through layered tactics like free trade zones (FTZs) and multi-layer transfer pricing (e.g., sequential sales at non-arm’s length prices) (Chan et al., 2016; Tian et al., 2016). Non-disclosure of ~68% key RPT information (e.g., pricing logic) exacerbates tax avoidance (Barokah, 2013), enabling profit shifting to foreign affiliates and eroding tax bases (Yang & Xu, 2024).Although RPTs can be economically justified (Gordon et al., 2004a), they risk abuse for private gain (Djankov et al., 2008; Barokah, 2013). In Iran, firms use subsidiaries in FTZs (e.g., Kish, Chabahar) and transfer pricing under Article 132-T of Iran’s Direct Taxation Law to shift profits: e.g., selling goods below market to affiliates, which then export at global prices, registering profits offshore. Weak oversight and fragmented databases hinder monitoring, but Iran’s Taxpayers’ Integrated System (TIS) provides foundational data for analysis.This study proposes a novel framework combining graph mining (to detect high-risk FTZ firms) and Type-3 Sheffer-like Type-4 fuzzy logic (to model tax data uncertainty) optimized by the Jaguar metaheuristic algorithm. It identifies suspicious groups exhibiting structural (e.g., nested ownership) and behavioral (e.g., abnormal pricing) tax evasion patterns, aligning with Iran’s Comprehensive Tax Plan for risk-based audits.
Research Questions:

Do economic sanctions increase RPT-based tax evasion?
How can advanced data analytics identify and model these hidden patterns?
Theoretical Framework

2.1. Related-Party Transactions (RPTs)
Per Iranian Accounting Standard 12 (Audit Organization, 2020), RPTs involve entities with control/influence over financial decisions. Key groups include:

Parent/subsidiary entities under shared control.
Key management personnel and relatives.
Entities with significant economic/management ties.

Two theoretical perspectives exist:
- Agency Theory:RPTs enable opportunism by insiders (Jensen & Meckling, 1976), e.g., underpriced asset sales (Cheung et al., 2006).
- Efficiency View: RPTs reduce transaction costs (Gordon et al., 2004a) but require disclosure to mitigate information asymmetry (Kohlbeck & Mayhew, 2010).
Empirical evidence confirms RPTs facilitate tax avoidance via transfer pricing (Harris et al., 1993; Jian & Wong, 2010), especially in low-tax jurisdictions (Barker et al., 2016).
2.2. Sanctions’ Economic Impact
Sanctions restrict input access, raise production costs (Parsa et al., 2013), contract import-reliant sectors (Caetano et al., 2023), and reduce total factor productivity (Nosratabadi, 2023). They incentivize shifting activities to the informal economy, causing technical inefficiency (Markus, 2024).

Methodology

3.1. Data & Variables
- Dependent Variable: Tax evasion, measured by the tax gap (difference between declared and final tax) per OECD standards (Slemrod & Weber, 2012).
- Independent Variable: RPT volume (Iranian Accounting Standard 12).
- Moderator: Sanctions index (PCA-derived from 10 macroeconomic variables, Table 1).
Data: 16,756 RPTs from 1,780 Iranian firms (2016–2020), including:

523 firms in FTZs (zero tax rate under Article 132-T).
1,257 non-FTZ firms with shared boards.

Financial data (net sales, COGS, operating profit) sourced confidentially from Iran’s National Tax Administration (INTA).
3.2. Integrated Framework

Graph Mining:


Construct transaction networks (nodes = firms; edges = RPTs weighted by price deviation).
Identify high-risk clusters(e.g., firms in FTZs with below-market pricing).


PCA for Sanctions Index:

- Combine 10 macroeconomic variables (e.g., oil exports, currency volatility) into a unified index.
- 2 principal components explain 85% variance (Table 1, Chart 3).

Fuzzy Metaheuristic Optimization:

- Apply Type-3 Sheffer-like Type-4 fuzzy logic to model data uncertainty (e.g., transfer pricing discrepancies).
- Optimize via Jaguar algorithm (multi-objective: minimize prediction error [MSFE], maximize detection accuracy).
- Output: Dynamic risk index (transaction volume, price deviation, geographic concentration).

Results & Discussion

- The analysis confirmed that sanctions significantly intensified RPT-based tax evasion, elevating its level from 0.389% (pre-sanctions) to 0.414% (post-sanctions). This 0.025% increase, though seemingly small, represents a substantial rise in hidden economic activity within the constrained environment.
- The Jaguar model achieved 98.8% accuracy (error rate: 0.012), outperforming traditional methods (40% vs. 74.6% detection rate).
- Graph analysis revealed post-sanctions topological shifts: increased suspicious nodes/clusters (Chart 4).
- Key evasion patterns:
- Multi-layer transfer pricing (e.g., mother → FTZ subsidiary → export).
- Abnormal profitability in FTZ subsidiaries.
- Geographic concentration in low-tax areas.

Conclusion & Policy Implications

5.1. Key Findings
Sanctions intensify RPT-based tax evasion by incentivizing complex, hidden transaction networks. The integrated graph-fuzzy-jaguar framework proves superior to linear models in detecting evasion under data uncertainty.
5.2. Innovations
- First application of Type-3 fuzzy logic in taxation.
- Dynamic risk index for audit prioritization.
- Operational compatibility with INTA’s existing systems (e.g., TIS).
5.3. Recommendations
- To INTA:Integrating the model into a blockchain-based real-time monitoring platform and Develop an AI dashboard with risk-tiered visualization (green/yellow/red).
- Domestic Policy: Mandating disclosure of transfer pricing logic and topological RPT networks and establishing a National Networked Data Analysis Center.
- International Cooperation:Leveraging double-taxation agreements for cross-border data exchange.
- Future Research: Extending the model to multinational contexts and designing "tax resilience indices" for sanction-affected economies.

Abstract Efficiency is one of the most important criteria that investors consider when evaluating influencing factors to identify suitable investment opportunities. Since managers play an effective role in company decisions, they may deviate from optimal investment choices. Therefore, the purpose of this research is to investigate the relationship between CEO power and overinvestment. In this regard, 123 companies listed on the Tehran Stock Exchange were examined between 2016 and 2022. The results show that there is a negative and significant relationship between CEO power and investment inefficiency (overinvestment). Furthermore, this relationship is not nonlinear. The findings indicate that powerful CEOs do not engage in excessive investments that could create more personal benefits for them. Indeed, because of risk aversion and ability effects, the private benefits of powerful CEOs are aligned with shareholders’ interests, making them less likely to overinvest
Introduction
Efficiency is one of the most important criteria that investors consider when evaluating influencing factors to identify suitable investment opportunities. Since managers play an effective role in company decisions, they may deviate from optimal investment choices. Therefore, the purpose of this research is to investigate the relationship between CEO power and overinvestment. To explain this relationship, three different effects are discussed: the discretion effect, the risk aversion effect, and the ability effect.
Under the discretion effect, CEO power is positively related to overinvestment, because powerful CEOs have more freedom of action and may use overinvestment decisions to create personal benefits. Through empire building and expropriation, they pursue self-interest that can increase their rewards, wealth associated with stock ownership, and job security because they control capital allocation. Furthermore, CEOs can create personal bonuses through overinvestment because they influence the choice of performance measures associated with their bonuses. Under the risk aversion effect, CEO power has a negative relationship with overinvestment, because powerful CEOs are more risk-averse than shareholders who can reduce their risk through diversified portfolios. Overinvestment may increase the risk of the company. Since most of the CEO's rewards and human capital depend on their company, it is difficult for them to diversify work and wealth risks. Therefore, powerful CEOs who do not diversify and are often considered the main planners of the company's long-term strategy are more likely to make investments based on risk aversion. As a result, they are less likely to overinvest. Under the ability effect, powerful CEOs with greater management ability can make investment decisions more effectively and efficiently, and therefore are less likely to overinvest. CEOs with stronger expertise can better manage the company's external uncertainties through their experience and knowledge. Hence, powerful CEOs make more efficient investment decisions. Accordingly, the main goal of this research is to investigate the effect of CEO power on overinvestment. From the perspective of economic studies, weak supervision over CEOs, in the shadow of weak management structures and opportunities to secure personal benefits, can encourage powerful managers to choose projects with a negative net present value (NPV), thereby reducing company value. On the other hand, greater CEO power leads to more appropriate investment in valuable projects and greater investment efficiency. Factors such as risk aversion, motivation to maintain reputation and credibility, and stronger management abilities make powerful managers perform better in evaluating investment opportunities and increase investment efficiency, which aligns with organizational research.

Research Question

According to the research objective, this study seeks to answer the question of whether CEOs with higher decision-making power overinvest.

Methods

The current research is of an applied type; in terms of its goal, it is analytical, quasi-experimental, and correlational. From the time dimension of the data, it is retrospective and post-event. In line with the purpose of the research, 123 companies listed on the Tehran Stock Exchange were examined between 2016 and 2022. The residuals of Richardson's (2006) model were used to measure overinvestment. CEO power was measured using the principal component analysis method and the criteria of CEO duality, the percentage of independent directors on the board of directors, CEO tenure, and CEO ownership percentage. The information required to measure the variables and test the research hypotheses was extracted from the Rahavard Novin database, audited financial statements, and other reports published on company websites, Codal, and the Stock Exchange Organization. After data collection, Excel software was used for summarizing and calculations. Since the dependent variable, overinvestment, is not continuous and has only one of the two values (zero and one), the logistic regression (logit) model was used to test the research hypothesis with this variable. In addition, a multiple regression model was used to test the research hypothesis with the investment inefficiency variable. Finally, the analysis was performed using EViews software.

Results

The results show that as CEO power increases, investment inefficiency (overinvestment) decreases. In addition, there is no significant nonlinear relationship between CEO power and investment inefficiency (overinvestment).

Discussion and Conclusion

The findings of the research show that powerful CEOs, who have more authority than shareholders in making company decisions, do not engage in excessive investments that could create personal benefits for them. Indeed, because of the risk aversion and ability effects, the private benefits of powerful CEOs are naturally aligned with shareholders’ interests, making them less likely to overinvest. Under the risk aversion effect, since most of a CEO's rewards and human capital depend on their company, it is difficult for them to diversify work and wealth risks. Therefore, powerful CEOs who do not diversify and are often considered the main planners of the company's long-term strategy are more likely to make investments based on risk aversion. As a result, they are less likely to overinvest. Under the ability effect, powerful CEOs have higher management abilities and therefore make more efficient investment decisions. Because strong CEOs with greater managerial ability possess better knowledge and judgment than their peers, making them more capable of predicting future changes, they do not waste capital on negative NPV projects. Therefore, more powerful CEOs are less likely to overinvest. These results are in line with Lo and Shiah‑Hou's (2022) research and are also consistent with organizational theory. According to this theory, the greater the power of the CEO, the more appropriate the investment in valuable projects and the greater the investment efficiency. Factors such as managers' risk aversion, motivation to maintain reputation, and stronger management abilities lead powerful managers to use better strategies for the optimal use of company resources, thereby increasing transparency and securing the interests of all stakeholder groups. Therefore, powerful CEOs make more efficient investment decisions.
 
 

Abstract This study was conducted to evaluate factors related to agency theory, government shortcomings, the consequences of critical theory maturity, and the quality of social benefits in management accounting. The grounded theory method was used to develop a model addressing the maturity of critical accounting and the quality of social benefits, with an emphasis on the role of agency theory. Interviews were conducted with 33 experts. After identifying relevant factors, the fuzzy Delphi method was applied for prioritization. The results showed that, among the factors related to government shortcomings and agency issues, indicators associated with government shortcomings and agency theory ranked first and second, with values of 0.915 and 0.908, respectively. Among the consequential factors, the top three were information benefits, accounting system benefits, and social benefits with values of 0.932, 0.931, and 0.860, respectively.
Introduction
This study was conducted with the aim of identifying and prioritizing the factors related to agency theory, government shortcomings, and the consequences of critical theory maturity, as well as the quality of social benefits in management accounting. Today, with the ever-increasing evolution and specialization of customer needs and technological changes, often overlapping across domains, new concepts such as critical theory in accounting have been introduced (Ferri et al., 2016). In fact, accounting creates an artificial consciousness for users of financial information, so that the existing conditions may not align with what accountants currently believe and practice (Khajavi & Mohammadian, 2018). In recent perspectives, with an emphasis on communication, attempts have been made to address the epistemic challenges of the modern world and issues of critical ethics (Ghorbani & Mohseni, 2019). The central role of accounting in judgment involving companies and broader social groups, such as consumers and the public, has also been highlighted. Accordingly, accounting is increasingly being recognized as a social practice (Jahangirnia & Bakhtiari, 2017). In general, critical theory in accounting has emerged in response to the need for social critique and information pluralism and places a strong emphasis on accountability. Accounting is not merely a technique for reporting monetary or quantitative values ​​or maximizing wealth and economic opportunities, but a tool for enhancing the quality of social benefits, accountability, and governance through broader stakeholder participation (Perksis et al., 2022). However, to date, limited efforts have been made in the field of accounting to develop and mature critical theory and to identify its indicators. Therefore, this study aims to identify and prioritize the key indicators related to agency theory, government shortcomings, and the consequences of critical theory maturity, as well as the quality of social benefits in management accounting.

Research Method

The grounded theory method was used to develop a model concerning the maturity of critical accounting and the quality of social importance, emphasizing the role of agency theory through expert interviews, which included 33 participants. Factors related to government shortcomings, agency issues, and consequential outcomes were identified and prioritized after evaluation and screening using the fuzzy Delphi method. This research was conducted during the period 1402-1403 (2023-2024). The statistical population of this study consisted of experts and specialists with sufficient knowledge and experience in fields relevant to the research topic. A purposive sampling method was used to select participants. In-depth, semi-structured interviews were then conducted. Sampling continued until the discovery and analysis process reached theoretical saturation. The data collection tool was an open-ended questionnaire in the form of semi-structured expert interviews. To analyze the interview data, three coding processes, including open coding, axial coding, and selective coding, were used based on the paradigm model of Strauss and Corbin (1998). In the quantitative phase, triangular fuzzy numbers were used to fuzzify the experts' responses. The expert evaluation was conducted using the fuzzy Delphi method with a seven-point Likert scale to validate and screen the dimensions and indicators identified in the qualitative phase. In addition, grounded theory was used for data analysis to ensure the relevance and importance of the identified indicators, and the fuzzy Delphi method was employed to finalize their selection.

Results and Discussion

The results of this study showed that among the factors related to government shortcomings and agency issues, the indicators pertaining to government shortcomings and agency representation ranked first and second in importance, with values of 0.915 and 0.908, respectively. Among the consequential factors, those related to information benefits, accounting system benefits, and social benefits ranked first to third, with values of 0.932, 0.931, and 0.860, respectively. A review of domestic studies indicates that critical thinking has been examined in several accounting-related studies. In this regard, Khajavi et al. (2020) used a critical approach to explore its role in uncovering the underlying structures and layers of social inequality in accounting and demonstrated that accounting and auditing standards should be reconsidered. Ghasemi et. al. (2020), adopting a critical perspective, argued that accounting transparency contributes to social progress and well-being. Samimi (2023) drawing on critical theory and using the grounded theory method, identified key underlying factors contributing to monopoly in auditing and negative traits associated with auditors' Machiavellianism, including cultural, environmental, and social factors; structural and technical weaknesses; and political governance, legal, and regulatory barriers. Mohseni et al. (2018) stated that critical accounting represents an approach that challenges conventional accounting practices beyond the application of specific techniques. In general, these individual studies explored various aspects of critical accounting and the quality of social benefits, and each identified and presented different variables relevant to the topic.
4- Conclusion
Critical accounting can guide social systems toward specific goals through social processes. In developing countries, including Iran, the expansion and development of accounting form part of the necessary infrastructure for achieving economic development goals and enhancing the quality of social benefits in governments. This depends on the growth of information and social benefits indicators in Management Accounting. The findings of this research enrich the academic literature and contribute to the enhancement of social value in accounting. Its results can be used by governments, researchers, companies, accountants, and accounting associations to support and improve sustainable reporting. Based on the findings, it is recommended that all areas of accounting be developed with a focus on identifying the current and future needs and objectives of social stakeholders. This should include reforming the accounting system through scholarly and knowledge-enhancing efforts, improving the transparency and quality of financial reporting, updating accounting standards, and aligning legal and tax provisions with international accounting standards to create a foundation for institutionalizing social benefits. Finally, the results confirm the validity of the overall research model. It is also recommended that accounting standards be developed with a critical theory approach to enhance the quality of social benefits. Moreover, in addition to applying a critical perspective on social benefits, standards should incorporate the advantages of management accounting systems and information-related benefits that are practical and useful for addressing social issues. Accounting standard-setting should prioritize attention to critical stakeholders and ensure that their concerns are properly addressed.
 
 
 

Abstract The rapid development of the business world has created numerous job opportunities for the workforce. Accounting graduates are among those who can readily enter the job market, and accounting remains a vital profession in the business world. Individuals with an accounting background can pursue various roles, including positions in public sector accounting. The data of this research was collected through a questionnaire distributed among 384 accounting students at different academic levels. The results revealed that financial rewards, labor market considerations, personality, social values, and professional training have a positive and significant effect on the choice of a career as a public sector accountant. Introduction Globalization of the economy, international integration, and economic growth have driven the professionalization of various disciplines. To address the needs and challenges of economic development, professionals must seek innovative solutions. One field directly tied to these challenges is the accounting profession, which has undergone significant changes in recent decades. Those entering the accounting profession today play a role that extends far beyond its traditional scope. The accounting profession primarily involves providing financial services, and public interest in this field continues to grow year after year. This increasing interest has led to the expansion of accounting education at various levels. Accounting graduates have the flexibility to choose from a wide range of career paths, including roles as government accountants, management accountants, and accounting educators. Upon completing their studies, accounting graduates can work as either government or non-government accountants. A government accountant works for a government agency and provides audit, tax, consulting, and accounting services. To contribute to the growing literature in the field of accounting, this research examines whether financial rewards, labor market considerations, personality traits, social values, and education influence the career choices of accounting students as government accountants. Literature review Financial rewards are monetary compensation given to employees for their performance in an organization. Studies have shown that public sector accountants assist the public and organizations by providing information about financial portals and receive financial rewards. Based on this, the first hypothesis is presented: H1: Financial rewards have a positive and significant effect on choosing a job as a public sector accountant. The working environment refers to the physical, social, and psychological conditions in which a job is performed. These conditions include objects and people that influence work life. Accordingly, the second hypothesis is proposed: H2: Market considerations have a positive and significant effect on the choice of a public sector accountant job. Personality traits are one of the topics discussed in every profession. Personality, as a way of classifying human characteristics, is a determinant of individual behavior in choosing a job and has a significant impact on this choice. Based on this, the third hypothesis is proposed: H3: Personality has a positive and significant effect on the choice of public sector accountant job. Values ​​are ideals and principles that guide human behavior. Social value is considered a fundamental concept in sociology and represents something accepted by everyone. It is recognized as a factor that reflects personal capability within society. Based on this, the fourth hypothesis is proposed: H4: Social values ​​have a positive and significant effect on the choice of public sector accountant job. Vocational training involves improving skills and striving for success. The importance of accounting education lies in the benefits it provides to the universities that offer it. Accordingly, the fifth hypothesis is proposed: H5: Vocational training has a positive and significant effect on the choice of a public sector accountant job. Research Methodology The statistical population of this research comprises accounting students at all academic levelsof accounting. In order to collect data collection was conducted using a questionnaire (Ningrum & Karsiati, 2022) consisting of two parts. The first part included demographic questions, while the second part contained questions related to the research variables. The questionnaire was distributed online via Google Forms, and a total of 384 completed questionnaires were analyzed. Results In this research, the partial least squares technique was used to fit the model and test the hypotheses. The findings showed that Cronbach's alpha and composite reliability for the research variables were greater than 0.7, confirming the reliability of the model. The average variance extracted for the variables exceeded 0.5, indicating convergent validity. Additionally, the values ​​along the main diagonal were larger than those ​​below the diagonal, confirming the model’s divergent validity. The factor loadings of the indicators were greater than 0.3, demonstrating a favorable relationship between the items and the variables. The t-statistic was greater than 1.96 in all cases, indicating that the factor loadings were statistically significant. Finally, the overall fit index was 0.702, signifying a strong model fit. Conclusion The results indicate that financial rewards have a positive and significant effect on choosing a job as a government accountant. This means that higher financial rewards lead to an increased likelihood of selecting a career as a public accountant. Expectancy theory supports this finding, suggesting that providing satisfactory rewards is appropriate when employee performance is good. Additionally, the results showed that market considerations have a positive and significant effect on choosing a job as a government accountant. This implies that the availability of government accounting jobs and ease of access to information about these roles significantly influence job choice, making it a common option for accounting graduates. The findings also demonstrated that personality has a positive and significant effect on choosing a job as a government accountant. A job aligned with an individual’s personality type enhances job satisfaction and work performance, emphasizing the importance of personality in career choice. Social values were also found to ​​have a positive and significant effect on choosing a job as a government accountant. The greater the social values ​​for the public accounting profession, the more likely individuals are to choose it as a career. The public accounting profession is highly respected in society, contributing to its appeal. Finally, the results indicated that professional training has a positive and significant effect on choosing a job as a government accountant. Training enhances accountants’ competence and self-confidence, encouraging them to pursue a career in public accounting. Participation in seminars and acquiring specialized skills further improve their knowledge and capabilities, reinforcing their professional growth.

Abstract Working capital management increases performance and reduces risk, thereby lowering the cost of capital. Many studies have been conducted in the field of working capital, including the adjustment of working capital toward targets and the effects of various variables on it. However, the influence of the prevailing economic environment, including booms and recessions, on the speed of adjustment has received less attention. The purpose of this research is to investigate the effect of economic booms and recessions on the speed of working capital adjustment in firms listed on the Tehran Stock Exchange. For this purpose, data from 153 firms listed on the Tehran Stock Exchange during the period of 2011 to 2022 were used. This research is practical in terms of purpose. The research method is based on the use of panel data and is quantitative and correlational. To analyze the data and test the research hypotheses, the dynamic panel method with the System Generalized Method of Moments (GMM) was used. The research results showed that managers adjust the firm's working capital ratio toward the target working capital. Other findings indicated that the rate of working capital adjustments during economic booms is greater than during recessions in both the financial and real sectors of the economy.
 

Introduction

Periods of prosperity increase a company's sales and growth, leading to more financing through internal financial resources and working capital. On the other hand, maintaining a larger amount of current assets may negatively affect the company's liquidity management and profitability, potentially reducing the return on assets. Additionaly, during economic recessions, financing through internal financial sources becomes limited, and financing through other sources increases the cost of capital. Accordingly, investing more or less than the optimal amount in working capital may negatively impact the company's performance. Therefore, based on the balance theory, firms may have a target working capital level that balances its benefits and risks (Ahangar, 2020). Nevertheless, firms adjust their working capital levels only when the benefits of the adjustment outweigh its costs (Ahangar, 2020).
Greater attention to working capital management is valuable for firms, as it increases performance and reduces risk, which in turn will reduce the cost of capital (Aktas et al., 2015). Business units may deviate from the optimal level of capital turnover due to advances in technology, changes in production costs, or random shocks. However, because optimal working capital offers advantages for business units, they continually strive to bring the actual level of working capital closer to the optimal level. The speed at which firms correct the deviation between the actual level and the optimal level of working capital is called the speed of working capital adjustment (Ahangar, 2020).
In domestic research, working capital has not been adequately explored as a dynamic concept, and many questions in this area remain unanswered for Iranian firms. For this reason, this research intends to investigate the existence of optimal working capital in Iranian firms using dynamic models and to measure their speed in achieving optimal working capital. Additionally, given the impact of economic booms and recessions on the provision of financial resources, especially working capital, and the need to adjust working capital toward optimal levels to increase firm value, this research examines the effect of economic booms and recessions on the speed of working capital adjustment in Iranian firms.

Literature Review

Firms that do not face restrictions on financing through external financial sources can more easily change the cash conversion cycle and, in fact, their working capital ratio. They can adjust working capital more quickly and reach the target working capital ratio faster. This means that during periods of economic prosperity, financing company expenses becomes easier, reducing adjustment costs such as financing costs. According to the balance theory, the speed of working capital adjustment increases or decreases depending on these factors (Ahangar, 2020).
In the literature related to capital turnover, several theories of capital structure, including balance theory (Miller, 1977) and hierarchical theory (Myers, 1984; Myers & Majluf, 1984) have been used to study the behavior of capital turnover. The equilibrium theory states that there is a balance point between the benefits and risks of investment, at which maximum value is obtained for firms. According to this theory, any deviation from the target turnover level is quickly adjusted (Ahangar, 2020). In the static balance theory, movement toward the target ratio is assumed to be instantaneous, while in dynamic balance theory, the path to the target ratio is a gradual process (Orlova & Rao, 2018). According to the hierarchical theory, firms, regardless of their target working capital, provide financial support according to a predetermined hierarchy. This financing can come from internal or external funds. Furthermore, in this theory, firms prefer internal funds to external financial sources to reduce the costs associated with information asymmetry when financing investment projects (Myers, 1984). In research related to working capital, the balance theory has attracted more attention (Aflatooni et al., 1401). The research hypotheses are presented as follows:
H1: Managers adjust the company's turnover ratio toward the target turnover.
H 2: During periods of prosperity, the speed of working capital adjustment in firms is higher than during recessions in the financial sector of the economy.
H 3: During periods of prosperity, the speed of working capital adjustment in firms is higher than during recessions in the real sector of the economy.

Methodology

This research is practical, analytical, quasi-experimental, correlational in terms of research purpose, and retrospective and post-event in terms of the time dimension of the data. To collect financial and accounting data, the Rahvard Novin database and reports published on the Codal website were used, and Eviews software was employed to analyze the data. To estimate the research models, the Blundell & Bond (1998) system generalized method of moments estimator was used. The statistical population of this research consists of firms listed on the Tehran Stock Exchange.

Results

The results of the research show that managers adjust the company's working capital ratio to align with the target working capital. Additionally, the research findings indicate that the speed of working capital adjustment during periods of prosperity is higher than during periods of recession in both the financial sector and the real sector of the economy.

Discussion

The results of the first hypothesis test showed that company managers tend to adjust the company's capital turnover according to their goals, whether they are in a period of prosperity or recession. This finding is consistent with the results of Banos et al. (2020), Ahangar (2020), and Aflatooni et al. (1400). This suggests that Iranian firms, by moving toward the goal of capital turnover, attempt to manage the impact of prevailing economic conditions to avoid the risk of bankruptcy during recessions and the decrease in profitability caused by the uncontrolled and unmanaged increase in current assets during boom periods. The results of the second and third hypothesis tests indicate that the speed of capital turnover adjustment during economic prosperity is higher than during economic recession in both the financial sector and the real sector of the economy. These findings are consistent with the results of Helfin et al. (2018) and Aflatooni et al. (1401). According to the results of this research, it can be concluded that firms have a greater ability to adjust their working capital during economic booms in both the financial and the real sectors. This plays an important role in the financial management of firms under different economic conditions. These results can assist financial managers in determining appropriate strategies for managing capital turnover in any economic period. Additionally, these findings can help financial and economic researchers gain a better understanding of how different economic conditions affect the financial behavior of firms.

Conclusion

These results can help financial managers determine appropriate strategies for managing capital turnover in any economic period. Additionally, these findings can help financial and economic researchers gain a better understanding of how different economic conditions affect the financial behavior of firms. Based on the findings of this research, the following practical suggestions are provided: Investors and company managers should always keep in mind that economic prosperity cannot be sustained without optimal capital management. It is merely a factor that increases the value of firms, or, in the case of economic recession, it may lead firms toward bankruptcy. Therefore, they should consider the effects of deviations in working capital when making decisions. Investors and managers should pay particular attention to the speed of working capital adjustment during economic booms (both in the financial and real sectors) due to the growth in the company and the simultaneous increase in current assets. The necessity of optimal liquidity and working capital management is crucial, as creating a balance in these areas will lead to improved performance and increased value for firms.
 

Abstract The complexities and continuous changes in the business environment have raised significant doubts about the ability of corporate reporting systems to meet stakeholders' needs. Additionally, the unique characteristics of Iran's economic environment necessitate careful consideration of the forces shaping the future of corporate reporting and appropriate policymaking by stakeholders. This research evaluates the policy options using a mixed-method approach, employing scenario analysis for corporate reporting in Iran. In the first stage, semi-structured interviews with experts and a fuzzy Delphi survey were conducted to identify the drivers affecting the future of corporate reporting in Iran. Next, using the Schwartz model, the importance and uncertainty of the key drivers were determined. The findings revealed that the three most critical and uncertain drivers are "increasing the connection with the global economy," "privatization of property," and "credit-oriented financial system". In the final stage, corporate reporting issues were categorized into five groups, and ten action options were developed. Robust planning analysis indicated that the optimal policy option includes expanding the target audience, prioritizing public interests, recognizing intangible assets, moving toward international standards, and advancing non-financial reporting with updated requirements. The results of this research offer valuable applications and recommendations for policymakers and stakeholders in corporate reporting.
 

Introduction

Corporate reporting plays an essential role in the effective functioning of the global economy and significantly contributes to shaping our understanding of the current and future drivers of value creation in business and the financial sector. It is constantly evolving to meet the demands of a diverse and expanding range of users, with ongoing efforts to adapt reporting procedures to the continuous changes in the regulatory and business environment. Policymakers and various stakeholders in corporate reporting must develop innovative approaches for forecasting and policymaking, considering future developments in the field. In this context, there is a growing demand for increased transparency and improved reporting mechanisms. Consequently, professional and academic authorities, standard-setting organizations, regulatory bodies, and other interested parties have begun conducting studies, proposing solutions, and establishing requirements to improve the corporate reporting system. Legislative institutions and standard-setting organizations have consistently aimed to provide standards and recommendations through an evolutionary process to enhance reporting and address the information needs of investors in resource allocation. Thus, The formulation of appropriate policies to accommodate changes in the corporate reporting system is critical. Corporate reporting requires well-informed decisions by policymakers to address these challenges. Based on this need, the main research questions of this study are as follows:

What are the main scenarios for the possible future of corporate reporting in Iran's economic environment?
According to different scenarios, what should be the appropriate policies for corporate reporting stakeholders?
Methodology

This study is applied research, employing a mixed methodology to achieve its objectives. Semi-structured interviews were conducted following the approach outlined by Kvale and Brinkman (2009) to identify the driving forces shaping the future of corporate reporting. Thematic analysis was used to analyze the interview data. For the qualitative analysis, appropriate methods aligned with Creswell (2008) approach were employed. In the second step, fuzzy Delphi analysis was conducted to reach a consensus on the identified drivers. Subsequently, to assess the level of importance and uncertainty, a questionnaire containing the list of consensus drivers was distributed to the experts who participated in the earlier stages of the research. The expert panel method was used to identify policy issues in corporate reporting, and corresponding action options were developed for each issue. The evaluation of these policy options was then carried out using a questionnaire tool based on expert opinions. The results from the questionnaire analysis were processed using MATLAB software, incorporating the development of a fuzzy inference system.

Results

During the exploratory interview phase with experts, 37 effective drivers of corporate reporting were identified. After two stages of fuzzy Delphi implementation, a total of 18 drivers were approved and agreed upon by the experts. These agreed-on drivers served as the foundation for developing scenarios based on the Schwartz model (1991). Among these, three drivers of "entering the global economic arena with the removal of sanctions," "privatization of ownership," and "changing the collateral-based financing system to a credit-based system" were identified as having both high importance and high uncertainty, making them the primary basis for developing distinct corporate reporting scenarios. Considering that three drivers are the basis for designing the scenarios. Given that each of these three drivers can exist in two possible states, a total of eight scenarios were designed. Five main corporate reporting challenges were identified to evaluate policy options, and ten action options were developed. Finally, based on the analysis of policy option evaluation using robust planning criteria, the best policy option was determined.

Conclusion

The evaluation of different scenarios indicates that scenario number 1, characterized by increased linkage with the global economy, privatization of ownership, and credit-oriented financing, is a favorable scenario for corporate reporting. In this scenario, there is a more suitable platform, greater demand, and an improved environment for the development and advancement of corporate reporting. However, it is important to note that this scenario also raises expectations for corporate reporting. If these expectations are not adequately addressed, stakeholders may increasingly rely on alternative information mechanisms. Based on the analysis of policy options evaluated using robust planning criteria, the best policy option was identified. This option includes expanding the target audience group, prioritizing public interests, increasing recognition of intangible assets, adopting international standards, and advancing non-financial reporting types with new requirements. This policy option demonstrates appropriate and acceptable performance across different scenarios, making it the most suitable choice for corporate reporting.

Abstract The purpose of this research is to investigate the moderating role of conservatism in the relationship between audit quality and earnings management. The current research is analytical and correlational. Furthermore, this study is considered quantitative based on the nature and characteristics of the data used to analyze the hypotheses. Data collection involved first using the library method, followed by statistics provided by the Tehran Stock Exchange Organization. The findings obtained from the regression model, based on a sample of 110 companies listed on the Tehran Stock Exchange over an 8-year period from 2015 to 2022, indicate that audit quality has an inverse and significant relationship with earnings management. Additionally, it was found that conservatism influences the relationship between audit quality and earnings management. The results concluded that conservatism reduces earnings management by recognizing losses promptly and delaying the recognition of profits. Since audit quality reduces information asymmetry, it limits profit manipulation through earnings management. In this context, conservatism plays a vital role in restricting managers' opportunistic reporting. Also, conservatism diminishes the company's incentives for earnings management, thereby reducing biases caused by managerial opportunism in accounting. Consequently, conservatism is expected to have a moderating role in the relationship between audit quality and earnings management, and the findings of this research confirm these expectations.
Introduction
The objective of this research is to investigate the moderating role of accounting conservatism in the relationship between audit quality and earnings management. In today's capital markets, earnings management has become a critical concern. It is a tool used by company management to influence earnings so that the numbers reach a predetermined target. This approach is employed for various reasons, one of which is earnings smoothing. As a result, instead of experiencing years of abnormally high or negative earnings, companies aim to maintain relatively stable results by employing innovative accounting tactics (Ismail et al., 2022). The main objective of financial statement auditing is to assure users that the financial statements are prepared in accordance with International Financial Reporting Standards (IFRS). According to IFRS, financial reporting must provide truthful information, ensuring that financial statements accurately present the information they claim to provide. It is therefore logical that audit quality has an inverse relationship with the occurrence of earnings manipulation (Ismail et al., 2022). There is also substantial research suggesting that the level of accounting conservatism may reduce the practice of earnings management (Chen et al., 2007; Ball et al., 2000; Khan & Watts, 2009; Aminu & Hassan, 2018; Li et al., 2018). Chen et al. (2007) argued for the existence of a trade-off in conservative practice. Adopting the principle of conservatism may lead to more noise in accounting reports, potentially reducing the value of the stewardship role. On the other hand, this principle may decrease the practice of earnings management. However, Chen et al., (2007) asserted that under reasonable conditions, the reduction in earnings management is sufficient to compensate for the noise caused by excessive accounting conservatism. Legislators, standard setters, and academics have expressed concern that companies use conservative accounting coverage to manage earnings (AICPA, 1939; Devine, 1963; FASB, 1980; Levitt, 1998; Penman, 2001). A significant number of previous studies link the effects of earnings management to audit quality issues (Chowdhury & Eliwa, 2021). The importance of this research lies in its effort to fill the gap in understanding the moderating role of accounting conservatism in the relationship between audit quality and earnings management.

Methodology

Research Type: Based on its objective, this research falls under the category of applied research. Applied research uses the theories, principles, and techniques developed in basic research to address practical, real-world problems. In terms of methodology and nature, this research is a correlational study. Additionally, it is considered descriptive research, as the researcher does not intervene in the position, state, or role of the variables. The research method is inductive.
Data Collection: Data collection will be conducted in two stages. In the first stage, a literature review will be performed using library resources and specialized Persian and English texts to establish the theoretical and conceptual framework of the research. In the second stage, financial data for the research will be extracted from the financial statements of companies listed on the Tehran Stock Exchange.
Data Analysis: Eviews software will be used to analyze the collected data.
Population and Sample: The population of this study includes all companies listed on the Tehran Stock Exchange between 2015 and 2022 (eight years). After applying the necessary limitations, the sample size for this research will consist of 110 companies listed on the Tehran Stock Exchange, representing 880 company-years. It is important to note that only listed companies are included in the study.

Result

Hypothesis 1: To test the first hypothesis of the study, Model (1) was used. The results of the model estimation show that the coefficient of audit quality (0.3645) is significant at the 5% level, indicating a significant inverse relationship between audit quality and earnings management. Among the control variables, firm size, sales growth, and research and development expenses exhibit a positive and significant relationship with earnings management, while financial leverage shows a negative and significant relationship. Additionally, it was found that book value, operating expenses, and sales volatility do not have a significant relationship with earnings management. The variance inflation factor values confirm the absence of multicollinearity among the explanatory variables. The significance of the F-statistic (3674.6) at the 1% level demonstrates that the model is significant. The Durbin-Watson statistic (2.0803) indicates no autocorrelation problem in the model components. Furthermore, the coefficient of determination shows that the independent variable explains approximately 53% of the variation in total. Based on these results, the first hypothesis of the study is not rejected at the 5% confidence level.
Hypothesis 2: To test the second hypothesis of the study, Model (2) was used. The results show that the coefficient of the audit quality variable (0.6577) is significant at the 5% level, indicating a significant inverse relationship between audit quality and earnings management. The coefficient of the conservatism variable (0.7305), significant at the 10% level, reveals a significant inverse relationship between conservatism and earnings management. Finally, the combined coefficient of determination for audit quality and conservatism (0.5913) is significant at the 5% level, indicating that conservatism moderates the relationship between audit quality and earnings management. The variance inflation factor values confirm the absence of multicollinearity among the explanatory variables. The significance of the F-statistic (1893.6) at the 1% level demonstrates that the model is significant. The Durbin-Watson statistic (2.1972) indicates no autocorrelation problem in the model components. Furthermore, the coefficient of determination shows that the independent variable explains about 51% of the variation in total. Based on these results, the second hypothesis of the study is not rejected at the 5% confidence level.

Conclusion

The results of the test for the first hypothesis indicate a significant inverse relationship between audit quality and corporate earnings management. Low audit quality occurs when audited financial statements contain errors that the auditor has not identified or disclosed in their report. Therefore, audit quality can be associated with the quality of financial reporting, as higher audit quality ensures higher reporting quality. The presence of audit quality reduces in information asymmetry, which in turn decreases earnings manipulation through earnings management. These results are consistent with the research of Hanoun et al. (2010), Alzoubi (2017), Fatahi Nafchi, and Fazel Dehkordi (2018), and Khajavi and Maimand (2015). The results of the test of the second hypothesis show that conservatism has a moderating effect on the relationship between audit quality and earnings management. Audit quality reduces information asymmetry, which subsequently decreases earnings manipulation through earnings management. In this context, conservatism plays an important role in restricting opportunistic reporting by managers. Furthermore, conservatism reduces a company's motivation for earnings management, thereby mitigating the biases caused by opportunism in accounting.
 
 

Abstract The purpose of this research is to explore perspectives on sustainability in strategic management accounting for the sustainability of companies in the context of financial technologies (FinTech). In terms of research method and based on its purpose and type of results, this study is classified as exploratory and developmental research. Initially, through thematic analysis, the accounting functions of strategic management for corporate sustainability in terms of financial technologies were identified. The reliability of the identified themes was then examined using Delphi analysis. Finally, through scenario analysis, the research aimed to establish strategic management accounting perspectives related to sustainability in financial technologies (FinTech). The results of the first phase of the research, conducted through 13 interviews revealed the identification of 3 overarching themes, 6 organizing themes, and 26 basic themes.

Introduction

Neoclassical economists and numerous management theories emphasize the assumption that the primary goal of companies is to maximize shareholder interests under competitive market conditions and limited capacities for acquiring financial resources. Shareholders are regarded as the most critical providers of financial resources necessary to advance corporate goals. Consequently, companies must adopt various significant approaches to secure stable financial resources and maintain their position in competitive market environments. One such approach involves leveraging financial technologies, or fintech, which focus on investing in technological infrastructure to achieve longer-term goals. These strategies aim to influence competitive dynamics arising from economic decisions and address the side effects of the company's operations on other stakeholders. Fintechs are defined as financial operational structures that enhance the scope of services expected by stakeholders through the application of innovative technologies, such as blockchain.

Literature Review

With the evolution of financial and accounting information technologies and infrastructures, management accounting is increasingly regarded as a dynamic phenomenon requiring reorganization in both cognitive and content dimensions. These changes, which began in 2008 with the emergence of fintech and artificial intelligence, have accelerated significantly in recent years. Fintech refers to innovative methods of financial transactions and reimbursement systems enabled by advancements in computer communication, big data analysis, networking, and artificial intelligence technology. The term fintech, an abbreviated of “financial technology” is often used in the context of financial strategies adopted by commercial businesses. Through fintech, businesses can develop capacities to deliver digital financial services using cutting-edge software and technologies.

Methodology

Based on the objective classification in the methodology, this study is considered exploratory because it utilizes expert interviews to identify the driving criteria of strategic management accounting for the sustainability of companies using financial technologies. In terms of its results, the study is developmental, as the combination of phenomena investigated lacks theoretical coherence and an integrated content framework in the study’s context. In terms of data type, this study employs a mixed-method approach. In the qualitative phase, thematic analysis and expert interviews were used to identify the driving criteria of strategic management accounting for corporate sustainability in the context of financial technologies. Subsequently, a Delphi analysis was conducted to examine the reliability of the identified themes. In the quantitative phase, the study utilizes scenario analysis to determine the functional perspectives of strategic management accounting drivers for sustainability in companies using financial technologies. To achieve this, the study focuses on mutual matrix processes and pairwise comparisons of criteria in row "i" and column "j" to identify the most favorable strategic management accounting scenarios for sustainability in the context of financial technologies.

Result

In this study, due to the lack of a coherent theoretical framework regarding the accounting functions of strategic management in the sustainability of companies using financial technologies, thematic analysis was employed in the first phase. During the 13 interviews conducted, a total of 3 overarching themes, 6 organizing themes, and 26 basic themes were identified through three stages of coding. Next, to formulate future scenarios for assessing the sustainability of financial technologies, the link matrix was used to identify the most impactful central organizing themes by analyzing the inputs and outputs of the matrix model through the MiM-Mak matrix. The results of this phase confirmed two key bases: the service cycle costing technique in fintech sustainability and the benchmarking technique in fintech sustainability. These bases serve as the axes for determining possible scenarios for evaluating the functions of strategic management accounting in the sustainability of companies using financial technologies. Through the reciprocal matrix, these scenarios provide a structured approach to describing the phenomenon under investigation.

Discussion

The purpose of this study is to explore perspectives on strategic management accounting in the sustainability of companies in terms of applying financial technologies (FinTech). Based on the results, the most favorable scenarios, in the matrix of mathematical functions is located in the third quadrant, referred to as the "metaphorical scenario of Heraclitus". This scenario highlights the significant role of the service cycle costing technique in fintech sustainability. In analyzing the results, it can be concluded that strategic management accounting, with a focus on the service cycle costing technique in fintech sustainability, seeks to explore the benefits of providing technological financial services to beneficiaries. This approach differentiates itself from traditional methods of delivering financial services by offering more perceptible advantages, such as faster access to financial information, enhanced technical criteria for decision-making, and improved financial support for beneficiaries. Thus, the financial service cycle costing tool, through strategic management accounting, enables these capabilities and fosters more advanced prospects for fintech sustainability at the level of commercial companies.

Conclusion

The results of this study indicate that strategic management accounting, with an emphasis on the service cycle costing technique in fintech sustainability, aims to explore the benefits of providing technological financial services to beneficiaries. This approach seeks to differentiate these services from other financial service delivery methods by offering more tangible advantages, such as faster access to financial information, enhanced technical criteria for decision-making, and improved financial support for beneficiaries.
 

Abstract The present study aims to investigate the effect of religious beliefs on the inaccuracy of accountants in preparing financial statements, with a focus on the mediating role of professional ethics in Iran. For this purpose, 400 questionnaires were designed and distributed among official accounting and auditing professionals. The data was analyzed using Amos software. The findings indicate that religious beliefs have a negative and significant effect on accountants’ dishonesty and a positive and significant effect on their professional ethics. Additionally, the professional ethics of accountants is a factor that reduces inaccuracies in preparing financial statements, exerting a negative and significant effect. Finally, as a mediating variable, professional ethics explains the relationship between religious beliefs and accountants' dishonesty. The findings confirm that professional ethics serves as a partial mediator in this relationship.

Introduction

Fraud and inaccuracies in financial reporting have drawn significant attention in the accounting and auditing professions, particularly regarding their causes and the methods available to prevent fraudulent behavior. The inaccuracy of accountants is a multi-dimensional and complex phenomenon with various causes and effects, often leading to destructive consequences for business units and society.
Increasing levels of inaccuracy in financial reporting have resulted in the bankruptcy of both large and small companies, raising concerns about the quality of financial statements. Consequently, identifying opportunities and possibilities to address accountants' inaccuracies in financial statements has become a key focus for creditors, investors, consultants, legislators, accountants, and other stakeholders.
The expansion of morality and religiosity can often be more effective than laws, regulations, and standards in preventing inaccuracies. Accountants and auditors primarily follow laws and standards imposed by regulatory bodies such as the standards development committee and the auditing organization. However, these externally imposed standards may not always be fully accepted or embraced wholeheartedly. In contrast, religious and moral principles such as honesty and truthfulness are deeply rooted in personal beliefs. These principles often stem from family upbringing and are influenced by factors such as schooling, religion, and public or cultural institutions, which are deeply intertwined with native and natural structures. As a result, there is a stronger likelihood that auditors and accountants will adhere to religious and moral principles compared to externally imposed standards.

Literature Review

The relationship between religiosity and religious beliefs can be analyzed through the theory of social norms. Social norm theory suggests that social norms influence people's behavior. It predicts that the religious beliefs of managers are shaped by the religious norms prevalent in their local geographical area. The importance of social and religious norms within a society plays a significant role in fostering people's adherence to these norms. By emphasizing the overall importance of moral behavior, faith-based beliefs provide specific guidelines and equip adherents with a framework for describing and understanding moral or immoral experiences.

Methodology

This research is one of the few studies that utilize the scientific method of construction and experimental proof, conducted based on pre-determined research hypotheses and plans. This type of research is appropriate when the data measurement criteria are quantitative, and statistical techniques are employed to extract results. Additionally, since the data for this study is collected through a questionnaire, it can be classified as survey research. In terms of its purpose, it falls within the applied research category.
In this study, all official accounting and auditing justice experts working at the provincial centers across the country were considered as the statistical population. Using Cochran's formula, the sample size for the study was determined to be 385 individuals. To ensure caution, 400 questionnaires were distributed among the members of the statistical population. Given the existing limitations, the questionnaire was administered online through the Judiciary Research Center. Out of the respondents, 325 individuals completed the questionnaire, and the number of valid responses suitable for analysis was 312. It should be noted that 13 questionnaires were excluded due to incomplete information. Therefore, the total number of questionnaires used for statistical analysis in this study was 312.

Results

Figure 1 illustrates the regression coefficients and the paths related to the testing of research hypotheses. The variable of faith-based beliefs is considered an independent variable, the inaccuracy of accountants in financial reporting is the dependent variable, and professional ethics is the mediating variable. Path c represents the relationship between the independent and dependent variables in the absence of a mediating variable. Path a shows the relationship between the independent variable and the mediator, while path b indicates the relationship between the mediator and dependent variables. Additionally, path c' represents the relationship between the independent and dependent variables in the presence of the mediating variable. To test the research hypotheses in Amos software, three mediation models, the direct model and the indirect model were employed. These models were included in the present study, and the related findings were reported. The findings revealed that religious beliefs have a negative and significant effect on accountants’ dishonesty and a positive and significant effect on their professional ethics. Furthermore, the professional ethics of accountants, similar to religious beliefs, is a factor that reduces the inaccuracy of accountants in preparing financial statements and has a negative and significant effect on it. Finally, as a mediating variable, professional ethics explains the relationship between religious beliefs and accountants' dishonesty. The findings confirm that professional ethics is a partial mediator in this relationship.

Discussion

This research demonstrated how religiosity and professional ethics can effectively reduce the inaccuracy of accountants in preparing financial statements. The beliefs of accountants and preparers of financial statements can often have a greater impact than reporting laws and standards. Since accountants’ dishonesty has highly destructive effects on society, economic stability, and public trust, the findings of the research suggest that strengthening accountants’ faith and moral beliefs can help prevent this harmful factor.

Conclusion

At first glance, it might be expected that an accountant with strong religious principles would demonstrate higher moral standards, thereby preventing them from preparing reports and financial statements that deviate from accounting principles. However, this is not always the case, and in some instances, the result may be the opposite. In reality, if religious beliefs alone do not enhance the moral system, they cannot effectively mitigate fraudulent behavior. In such situations, religiosity without moral commitment may manifest as hypocritical behaviors, which not only fails to reduce wrongdoing, but may even exacerbate it. Without ethical commitment, managers and accountants may manipulate financial statements to make them appear favorable, altering the numbers to avoid managerial threats without adhering to ethical principles.

Abstract In today’s world, a company’s profile is not determined solely by financial issues; rather, there is a growing need to include environmental and social perspectives. Consequently, there has been a rapidly increasing awareness of social and environmental activities, which in recent years has been considered under the concept of sustainability performance. According to the contingency theory, the implementation of a sustainability approach can vary significantly depending on an organization’s unique conditions. This theory has had significant implications for management decision-making, as management decisions are influenced by the characteristics of the managers themselves. The purpose of this research is to investigate the moderating role of managers' behavioral dimensions on the relationship between contingent factors and non-financial sustainability performance. Nine research hypotheses were tested and analyzed using the information of 142 firms admitted to the Tehran Stock Exchange during the period from 2013 to 2022 (including 1,420 firm-year observations) and using regression. The results indicated a positive and significant effect of firm size on non-financial sustainability performance and a negative and significant effect of environmental complexity and uncertainty on non-financial sustainability performance. No significant relationship was documented between board independence and non-financial sustainability performance. Management optimism strengthens the relationship between firm size and non-financial sustainability performance. In addition, management myopia changes and negates the relationship between board independence and non-financial sustainability performance. However, management optimism does not have a moderating role in the relationship between environmental complexity and uncertainty and the independence of the board of directors with non-financial sustainability performance. Finally, management myopia does not moderate the relationship between firm size, environmental complexity, and uncertainty with non-financial sustainability performance.
 

Introduction

The business environment for companies is increasingly uncertain and unstable due to many factors, not only financial but also non-financial. The application of contingency theory to sustainability reveals several factors that may influence performance and shape sustainability-oriented practices. In the field of corporate sustainability, this theory guides companies to prioritize sustainability as a dynamic capability to identify new opportunities and threats, leverage relevant opportunities, and adapt to market dynamics. Organizational strategic outcomes and processes are influenced by the managerial characteristics of senior managers. In particular, strategic choices are driven more by behavioral factors than by mechanical optimization. This theory emphasizes that the different characteristics of senior managers affect their strategic and structural decisions, which directly impact organizational performance. Based on this, the aim of the current research is to investigate the moderating role of managers' behavioral dimensions on the relationship between contingent factors and non-financial sustainability performance.

Methodology

According to its nature, this research is classified as applied, descriptive, and based on regression analysis. The necessary information for the research variables and hypothesis testing was gathered by referring to audited financial statements, independent audit reports, and financial database software such as Rahvard Navin and Tadbir Pardaz. The research data was then compiled in Excel, and used for statistical analysis with EViews software.
In this research, the statistical population includes all the companies listed on the Tehran Stock Exchange. Considering the conditions, a total of 142 companies (equivalent to 1,420 company-years) were selected, and their data was compiled using Excel software, then summarized, classified, and refined. Based on the objectives of the research, nine hypotheses were formulated as follows:
First hypothesis: Firm size has a relationship with the company's non-financial sustainability performance.
Second hypothesis: Environmental complexity and uncertainty are related to the company's non-financial sustainability performance.
Third hypothesis: Board independence is related to the company's non-financial sustainability performance.
Fourth hypothesis: Management optimism moderates the relationship between firm size and non-financial sustainability performance
Fifth hypothesis: Management optimism moderates the relationship between environmental complexity and uncertainty with non-financial sustainability performance.
Sixth hypothesis: Management optimism moderates the relationship between board independence and non-financial sustainability performance.
Seventh hypothesis: Management myopia moderates the relationship between firm size and non-financial sustainability performance.
Eighth hypothesis: Management myopia moderates the relationship between environmental complexity and uncertainty and non-financial sustainability performance.
Ninth hypothesis: Management myopia moderates the relationship between board independence and non-financial sustainability performance.
 
To test the above hypotheses, the following regression models are used:
+
(1)
 
+
(2)
+
(3)

Conclusion

The increasing pressure to meet sustainability requirements has encouraged companies to implement sustainability programs to monitor and evaluate their processes and the impact of their activities along the value chain. It appears that not only is there a difference of opinion about the definition of corporate sustainability, but there is also ambiguity regarding the implementation of corporate sustainability practices. As a result, a significant diversity in organizations and various approaches to corporate sustainability can be identified. In this context, to enhance the understanding of the implementation of sustainable practices, it is suggested to adopt contingency theory. The aim of the current research is to investigate the role of managers' behavioral dimensions on the relationship between contingent factors and non-financial sustainability performance.
The results of the first hypothesis test showed that firm size has a positive and significant effect on non-financial sustainability performance. Since firm size affects the company's strategy, organizational goals, and competitive environment, non-financial performance is also influenced by these factors. Therefore, the larger the firm, the better its sustainability performance. This finding is in line with the findings of Mousanejad et al. (2021) and Yaghoubian et al. (2021).
The test of the second hypothesis indicates a negative and significant impact of environmental complexity and uncertainty on non-financial sustainability performance. Non-financial sustainability performance, which encompasses diverse aspects of the company's activities such as employees, the role of shareholders, supplier contracts, internal processes, and service quality, is relevant to health indicators. The presence and increase of environmental uncertainty negatively affect the quality of these factors, meaning that environmental uncertainty and complexity reduce non-financial sustainability performance. This result is consistent with the findings of Yuliusman et al. (2023) and contradicts the findings of Yaghoubian et al. (2021).
In the third hypothesis, no significant relationship between board independence and non-financial sustainability performance was documented. This finding can be explained by the fact that several factors, including the specific characteristics of companies, can affect the relationship between board independence and non-financial sustainability. Therefore, no significant relationship between these two variables was found in the companies studied.
In the fourth hypothesis, the moderating role of management optimism, as one of the behavioral dimensions of managers, was investigated in the relationship between firm size and non-financial sustainability performance. The findings indicate a positive effect of management optimism on this relationship. In other words, management optimism strengthens the relationship between firm size and non-financial sustainability performance.
The fifth and sixth hypotheses examined the moderating role of management optimism on the relationship between complexity, environmental uncertainty, and board independence with non-financial sustainability performance. The findings showed that management optimism does not moderate the relationship between environmental uncertainty, company complexity, and board independence with non-financial sustainability performance.
The moderating role of management myopia on the relationship between contingency variables and non-financial sustainability performance was investigated in the seventh to ninth hypotheses. The findings indicate that management myopia does not moderate the relationship between firm size, complexity, and environmental uncertainty with non-financial sustainability performance. However, regarding the relationship between board independence and non-financial sustainability performance, management myopia, as a moderating variable, has changed the direction of the relationship, resulting in a negative effect of board independence on non-financial sustainability performance. In other words, management myopia leads to reduced attention to non-financial sustainability performance under conditions of greater managerial independence, thereby degrading this performance.

رابطه بین عوامل اقتضایی و عملکرد پایداری غیرمالی؛ نقش 

Abstract Compliance with social and environmental responsibilities is one of the requirements of the current competitive era, and the competitive pressure on companies in this situation imposes costs that can affect financial performance. This research investigates the moderating role of competitive strength in the relationship between social and environmental responsibilities and financial performance. The statistical sample for this research consists of companies listed on the Tehran Stock Exchange between 2016 and 2021. Using a regular screening method, 108 companies were selected as samples. After checking the classical assumptions of regression, the panel data model with fixed effects was used. The results showed that social performance has a positive relationship with financial performance. Competitive strength has a negative moderating effect on the relationship between social performance and financial performance. Environmental performance also has a positive relationship with financial performance, and competitive strength has a negative moderating role in this relationship. According to the coefficients of the variables, the social dimension of the company is more effective in increasing performance than the environmental dimension. Introduction A balance must be established between the modernization process and social and environmental concerns. Additionally, society's expectations regarding moral, legal, economic, and public interests require companies to commit to the communities in which they operate (Porter & Kramer, 2011). On the other hand, the growing interest of companies, especially large, national, and multinational companies, to demonstrate better environmental and social performance as part of their corporate social responsibility policy is often reflected in their management structures and investment policies. In line with the social responsibility policy, companies invest in the environmental field for three reasons: complying with environmental and social regulations and standards, improving company conditions, creating a favorable image of the company for society, and gaining access to other markets (Zaid et al., 2020). Social responsibilities have been utilized in various businesses to achieve a competitive advantage and create stable relationships with society. In this regard, the theory of social responsibilities refers to the combined pursuit of economic progress, social equality, and environmental protection. The nature of social responsibilities is the interconnected and mutual realization of financial, social, and environmental goals (Donkor et al., 2023). A company's environmental responsibility refers to its organizational behavior and commitment to the natural environment, which symbolizes the company's environmental ethics (Dilla et al., 2019). Several studies have shown conflicting results regarding a firm's environmental performance and financial performance. Some previous studies have shown that environmental responsibility improves long-term performance (Arda et al., 2019; Gilal et al., 2019). In addition, green knowledge and innovation promote an environmental orientation that allows companies to improve performance (Atan et al., 2018). On the contrary, since introducing environmental initiatives is costly (Zhang et al., 2019), evidence has shown that corporate environmental responsibility does not always lead to positive results (Chollet & Sandwidi, 2018). Based on a sample of companies listed on the Tehran Stock Exchange, this study examines the role of competitive strength in the relationship between firms’ social and environmental performance and financial performance. Literature Review Green theory emphasizes that community care helps organizations in sustainable development. Hence, government regulations and customer pressure encourage companies to adopt such practices in emerging markets. Environmental responsibility allows companies to improve their competitive advantages and dynamic capabilities (Arda et al., 2019). Incorporating environmental values supports environmental business in the long term (Gill et al., 2019). In general, green knowledge and innovation promote an environmental orientation and green resource management in companies, subsequently allowing them to improve their performance (Atan et al., 2018; Zhang et al., 2019). Based on this, this research expects to improve the effectiveness of a company by using organizational resources for environmental performance while simultaneously improving social performance. Proponents of the positive effects of CSR argue that CSR enhances corporate value and image, as well as develops brand positioning, reputation, and corporate image, which in turn enhances financial performance in the long run (Hill, 2020). It is often assumed that the proper use of economic, social, and governance standards requires higher financial efficiency and performance. Managers of firms with fewer resources have fewer opportunities to divert resources to their advantage (Kumar et al., 2023). They are more concerned about their presence in the market and maintaining their market share in the industry, and they consider themselves less socially responsible towards the company, market, and society (Jiang et al., 2019). The moderating power of competition encourages companies to act in socially responsible ways and helps maintain their reputation (Chih et al., 2010; Graafland, 2018). The intensity of competition affects decisions related to social responsibilities, including social and environmental performance (Jiang et al., 2019). Different levels of competition affect the relationship between the social and environmental performance of companies. Social practices and environmental ethics are intangible assets for a company in capital markets, and these assets change with shifts in competition levels. In particular, considering the role of competitive strength, the relationship between social performance and environmental performance with financial performance changes as the level of competition fluctuates (Saeed et al., 2023). Therefore, the following hypotheses can be proposed: Hypothesis 1: There is a positive relationship between social performance and financial performance. Hypothesis 2: Competitive strength moderates the relationship between social performance and financial performance. Hypothesis 3: There is a positive relationship between environmental performance and financial performance. Hypothesis 4: Competitive strength moderates the relationship between environmental performance and financial performance. Methodology This research is practical and post-event, conducted using the secondary data collection method. The information from companies was collected by referring to the Codal.ir website and using their financial statements and attached notes. The study period covers 2016 to 2021. Before testing the proposed model and hypotheses, the assumptions of the regression models were checked. The Chow test, Hausman test, and variance heterogeneity test indicated that the panel data model with fixed effects is suitable for the models of this research. In this study, the Breusch-Pagan-Godfrey test was used to check for heteroscedasticity. The results of the heteroscedasticity analysis show that the residuals of the normal regression models do not have constant variance, indicating heteroscedasticity, and the generalized least squares method was used to address this issue. Results The variable coefficient of social performance in models 1 and 2 is 0.0092 and 0.019, respectively, and is significant at the 99% confidence level in both models. There is a positive relationship between social performance and financial performance, meaning that compliance with social responsibilities leads to an increase in financial performance. However, in model 2, the moderating variable (strength of competition) reverses the relationship between social performance and financial performance. At the 99% confidence level, the strength of competition has a negative effect on the relationship between social performance and financial performance. The variable coefficient of environmental performance in models 3 and 4 is 0.003 and 0.004, respectively, and is significant at the 95% confidence level. There is a positive relationship between environmental performance and financial performance, indicating that compliance with environmental responsibilities leads to an increase in financial performance. In model 4, the sign of the coefficient for the moderating variable (strength of competition) is positive, meaning that the strength of competition has a positive relationship with financial performance. However, the moderating variable reverses the relationship between environmental performance and financial performance, so at the 99% confidence level, the strength of competition has a negative effect on the relationship between environmental performance and financial performance. Conclusion Disclosure of social performance leads to increased financial performance. The disclosure of social performance by the company, as a positive signal to the market and shareholders, directly benefits the improvement of the company’s reputation and value. Additionally, this disclosure can indirectly affect the company’s financial performance through mediators such as competitive advantage, reputation, customer satisfaction, access to capital, and environmental resource efficiency. The company's competitive advantages are one of the important dimensions of market characteristics that company leaders should consider in their efforts to make optimal decisions to maximize financial performance. When there are no competitive pressures, managers may become lax in their duties, leading to poor management and high agency costs. Disclosure of environmental performance also leads to increased financial performance. Compliance with environmental responsibilities and publication of periodic reports raise awareness and judgment among society and stakeholders, thereby strengthening the company's brand. To ensure that environmental goals are met, environmental functions such as the development of environmental policies and programs, setting quantitative and measurable goals for reducing environmental pollution, implementing pollution prevention obligations, measuring and evaluating potential environmental effects, revising executive plans, and making reforms must be carried out. Competitive strength has a negative moderating role in the relationship between environmental responsibilities and financial performance. Today, governments support and encourage companies to fulfill social and environmental responsibilities. On the other hand, when facing external pressures, companies rely on government support and try to attract technical and financial incentives to carry out social and environmental responsibilities at a lower cost and more easily. By actively implementing social and environmental responsibilities, companies can communicate with governing bodies and actively participate in the development and approval of environmental responsibility programs. These actions help companies gain external legitimacy and promote their corporate brand. In this way, by taking advantage of these factors, companies can increase profitability while raising product prices and consolidating customer loyalty. Additionally, emphasizing the reduction of physical waste through environmentally friendly solutions can lay the groundwork for reducing costs and increasing profitability.    

Abstract This article aims to evaluate the performance of staff at the National Treasury following the implementation of an electronic fund request system. This evaluation is conducted using the Balanced Scorecard approach. The research methodology employed is descriptive and applied in nature. The study’s statistical population comprises 53 experts, auditors, and managers from the National Treasury, working at the Ministry of Economic Affairs and Finance. This group also includes the implementers and specialists of the electronic fund request system. The validity of the questionnaires was determined using content validity, and reliability was established with a Cronbach’s alpha coefficient of 0.883. The study’s findings suggest that the performance of National Treasury staff, post-implementation of the electronic fund request system, is satisfactory when viewed through the lens of the Balanced Scorecard. The key criterion for evaluating the performance of National Treasury staff is empowerment, with an average rank of 3.25.   Introduction Success in the implementation of electronic government in any country requires a model tailored to the goals, requirements, and conditions of that country. Therefore, a lack of proper planning can lead to neglecting needs and failure in achieving the goals. However, planning alone is not enough to guide and evaluate the performance of companies in an era where creating value and generating wealth through investment in customers, suppliers, employees, processes, technology, and innovation is essential. Research question: Is the performance of the employees of the General Treasury Department optimal from the perspectives of financial, customers, internal processes, and growth and learning dimensions of the Balanced Scorecard after the implementation of the electronic fund request system? Literature review The Balanced Scorecard presents a framework for articulating strategies aimed at generating value for an organization’s stakeholders, including shareholders, customers, and citizens. Over the years, the Balanced Scorecard has evolved significantly. It began as a performance evaluation tool in 1990, featuring performance dimensions, strategic objectives, key indicators, and performance-related rewards. By 1996, it had transformed into a new management system, emphasizing organizational learning, the identification of operational issues, feedback for future planning, and fostering organizational knowledge, along with the introduction of the PDCA management cycle. In 2001, it was presented as a framework for facilitating change. Methodology Drawing upon the models scrutinized in the research trajectory and theoretical underpinnings, this study evaluates employee performance within the country’s General Treasury. It employs the Balanced Scorecard approach and uses the Treasury as a case study to formulate the research model. This research is applied in nature, utilizing the cognitive and informational context provided by foundational research to address needs. The aim of applied research is to devise solutions for operational issues, and its results should be implementable. Furthermore, in terms of its nature and methodology, this research is descriptive (survey research). The objective of conducting descriptive research is to depict the tangible and actual characteristics of a subject or phenomenon. The questionnaire’s validity was confirmed by a group of university experts and professors, and its reliability was affirmed using Cronbach’s alpha coefficient (α=0.883). Following the distribution, collection, and analysis of information, a consensus was reached among experts to position the criteria within each of the four dimensions of the BSC. Result Upon collection and extraction, the questionnaires were processed using SPSS statistical software for analysis. Descriptive statistics were utilized, including frequency, frequency percentage, mean, and standard deviation. Discussion This study uses the one-sample t-test for analyzing and measuring the questions. To identify which scale of the Balanced Scorecard approach is prioritized, the Friedman test was utilized. Furthermore, to determine which micro-variable of the Balanced Scorecard approach’s scales received the highest score, the mean and, more specifically, descriptive charts were used. In this regard, we discuss the 4 main research questions. First question: According to the one-sample t-test, since the significance level (sig) is 0.005, which is less than the standard level of 0.05, and given that the t-test value is reported as 2.944, which is greater than the standard level of 1.96, zero does not fall within the upper and lower limits. Considering the descriptive statistics of the t-test, the acquired mean in the sample is reported as 3.39, which is 0.39 higher than the population mean (3). Second question: Considering the one-sample t-test, since the significance level (sig) is 0.0001 and this value is less than the standard level of 0.05, and given that the t-test value is reported as 6.606 which is greater than the standard level of 1.96, zero does not fall within the upper and lower limits. Considering the descriptive statistics of the t-test, the acquired mean in the sample is reported as 3.58, which is 0.58 higher than the population mean (3). Third question: Since the significance level (sig) is 0.0001 and this value is less than the standard level of 0.05, and given that the t-test value is reported as 4.261, which is greater than the standard level of 1.96, zero does not fall within the upper and lower limits. Considering the descriptive statistics of the t-test, the acquired mean in the sample is reported as 3.37, which is 0.37 higher than the population mean (3). Therefore, it can be generally concluded that after the implementation of the Electronic Fund Request System, from the internal processes perspective (except for the two dimensions of binding instructions and lack of focus), the performance of the employees of the General Treasury is satisfactory. Fourth question: Considering the one-sample t-test, since the significance level (sig) is 0.0001 and this value is less than the standard level of 0.05, and given that the t-test value is reported as 5.137, which is greater than the standard level of 1.96, zero does not fall within the upper and lower limits. Considering the descriptive statistics of the t-test, the acquired mean in the sample is reported as 3.47, which is 0.47 higher than the population mean (3). Therefore, it can be generally concluded that after the implementation of the Electronic Fund Request System, from the growth and learning perspective (empowerment, culture and values, satisfaction with the work environment, quality of training courses, and satisfaction with professionalism), the performance of the employees of the General Treasury is satisfactory. Conclusion The findings of the study indicated that empowerment, with an average rank of 3.25, secured the highest rank and was of significant importance. Subsequently, culture and values, quality of training courses, job satisfaction, and satisfaction with the work environment were also deemed important. This research provided a holistic view of the performance of the employees of the General Treasury, rather than focusing on just one aspect of performance. In essence, alongside financial measures, aspects such as customer experiences, employee growth, and process improvement and efficiency were also taken into account.    

Abstract Abstract
Pension funds in Iran use a defined benefit pension plan, and their sustainability is important. However, the evaluation of their sustainability has always been criticized. Minimum reporting and simple accountability indicators do not meet the informational needs of stakeholders. Thus, the main issue is to identify the indicators and standards for a comprehensive evaluation of financial sustainability. To address this issue, the theoretical foundations of sustainability evaluation of pension funds and the indicators applied by other countries and international organizations were examined. The indicators were presented to experts for receiving their opinions and, to reach a consensus on key indicators, a Fuzzy Delphi method was applied. For ranking and developing a combined indicator, the final indicator was obtained using experts' opinions and the SWARA method. 27 indicators in four dimensions were extracted from the theoretical foundations: equity, adequacy, financial, and innovation. According to the results of the Fuzzy Delphi method, 15 key indicators were finally confirmed. Among the key indicators, the support ratio obtained the first rank, while the replacement rate and penetration coefficient obtained the second and third ranks, respectively. The results of the SWARA method confirmed the combined indicator consisting of the equity dimension (1 sub-indicator), the adequacy dimension (3 sub-indicators), and the financial dimension (11 sub-indicators). The weight of equity, adequacy, and financial in the combined indicator is equal to 6%, 21%, and 73%, respectively. The support ratio, the present value of the Assets to Liabilities Ratio, and the actuary analysis obtained ranks 1 to 3. According to the combined indicator, the financial dimension has the highest importance, and despite difficulties such as a lack of resources and liquidity to pay current obligations, attention is focused on equity, adequacy, and innovation. However, combined indicators should always be reviewed.

Introduction

One of the challenges faced by pension funds and stakeholders in this system is how to assess financial sustainability and reporting. The governance structure, stakeholder relations, management, and accountability of pension funds necessitate attention to the evaluation of sustainability. Occupational pension schemes must provide necessary information regarding retirement plans. The information should be presented in a way that stakeholders can monitor and assess the financial health of occupational pension schemes and determine whether they are capable of fulfilling their contractual obligations. International organizations generally use indicators that are based on accessible information from different countries and therefore have the highest utility for comparison.
In recent years, combined indicators have become one of the most commonly used analytical tools in many fields of social realities. Combined indicators have been widely accepted as useful tools for decision-making and information communication. Combined indicators are a combination of simple indicators with specific weights, where the weights indicate the relative importance that each of them should have in the final overall indicator. Determining the simple and combined indicators for assessing financial sustainability requires a precise understanding and attention to the characteristics of retirement plans, as these characteristics will vary from one organization to another and across different retirement schemes. This research aims to investigate and study the indicators used by international organizations and other countries, providing a scientific basis for evaluating and reporting the financial sustainability of pension funds.

Methodology

Considering the objective of the research, it is of an applied nature. In terms of implementation, this research is field-based. The research is of a mixed nature, meaning it consists of two components: qualitative and quantitative. The research, in terms of data collection, is conducted in a real and unadulterated manner and falls into the category of descriptive (non-experimental) research with a survey and exploratory approach. To properly conduct the research and achieve scientific results, four main stages of development and actions have been undertaken.
The first stage involves reviewing and studying the theoretical foundations of evaluating the financial sustainability of pension funds and the indicators used in other countries, as well as identifying evaluation models used by international institutions to access proposed indicators, seek expert opinions, and obtain consensus on them. The second stage includes seeking expert opinions on the extracted key indicators from the theoretical foundations of the research to select acceptable indicators based on the conditions of Iranian pension funds. The Fuzzy Delphi method was used to seek expert opinions. In the third stage, the SWARA method was used to determine the weights of key indicators. Finally, in the last stage of the research, the findings and results are compared and aligned with the combined indicators used by other countries and international institutions.
 

Results and Discussion

This study analyzes a significant number of indicators of pension system sustainability. In conducting this research, using literature and scientific texts, the indicators for evaluating the sustainability of pension funds were identified in terms of adequacy (6 indicators), equity (4 indicators), financial (14 indicators), and innovation (3 indicators). Based on the consensus of experts, key indicators were finalized in three dimensions. The results indicate a combined indicator consisting of the dimensions of equity (1 sub-indicator), adequacy (3 sub-indicators), and the financial dimension (11 sub-indicators). In the next stage, using the SWARA method, weights were assigned to each of the indicators. Based on the ranking performed in the combined indicator, the equity dimension, including one indicator (implicit pension debt), accounts for 6% of the weight of the combined indicator. The adequacy dimension, composed of indicators such as replacement rate, asset growth rate, and asset growth rate to inflation ratio, accounts for approximately 21% of the weight of the combined indicator. Lastly, the financial dimension, being the most influential, accounts for 73% of the weight of the combined indicator and includes indicators such as population coverage ratio, support ratio, dependency ratio, consumption-to-resource ratio, consumption growth rate-to-resource ratio, current asset value-to-obligations ratio, accumulation rate, insurance contribution-to-pension payment ratio, actuarial analysis, economic dependency ratio of the elderly, and funding ratio. Considering the obtained combined indicator, it can be stated that the financial dimension indicators have the highest importance, followed by the sub-indicators of the adequacy dimension.

Conclusion

The results of this study indicate that reporting and evaluating the financial sustainability of pension funds have faced challenges, including the lack of consensus on evaluation indicators. Published reports on the status and financial performance of pension funds have not been aligned with the characteristics of pension funds and stakeholder needs. Additionally, it is observed that some of the theoretical indicators mentioned in the literature do not correspond with the indicators used by international organizations (particularly the actuarial ones). According to the combined indicator, the financial dimension has the highest importance, and despite difficulties such as lack of resources and liquidity to pay current obligations, attention is focused on equity, adequacy, and innovation. However, combined indicators should always be reviewed.
To address the existing issues at the operational, supervisory, and standard-setting levels, sufficient and effective measures need to be taken to advance the goals of sustainability assessment and reporting. Standard-setting organizations in the field of sustainability can play a crucial role in enhancing sustainability knowledge through educational development. At the organizational level, strong official support and senior management commitment are required for the development of sustainability assessment processes, and necessary training should be provided. It is important to pay more attention to the concepts and indicators of sustainability assessment to foster a better mindset towards sustainability and reporting. Regulatory bodies and stakeholders should employ innovative approaches in their assessments, including the performance of pension funds. The use of simple indicators may not provide sufficient information, so it is better to utilize combined indicators and update them to align with the characteristics of the pension fund's operating environment.

Abstract Design Science Research Methodology (DSRM) is a solution-oriented approach for conducting research that transcends mere understanding of existing situations, aiming to generate innovative and novel artifacts to realize desired outcomes. Despite its widespread use in other technical and managerial domains, and more than two decades since the first exploration of DSRM in accounting literature, its true potential went largely unrecognized until the recent years, when it gained unprecedented recognition from accounting researchers. In this pioneering research, we analyze trends, identify influential figures, and map the intellectual and conceptual landscape of accounting research related to DSRM. Utilizing co-word analysis, co-authorship techniques, as well as scientific mapping and word cloud visualization, we scrutinize 51 articles from journals indexed in the most recent Australian Business Deans Council (ABDC) list from 2023. Our findings reveal that more than half of the research output is concentrated in the four-year period spanning from 2020 to 2023, signaling a growing interest among accounting researchers in this methodology. The dominant subject areas in design science articles are audit and control, coupled with the integration of emerging technologies and data analytics techniques. The most cited work is Guido Geerts (2011) paper, "A design science research methodology and its application to accounting information systems research" with 140 citations in the Scopus database alone. The most prolific author, Miklos Vasarhelyi, has authored six articles and boasts the most scientific connections with other researchers in this field. The State University of New Jersey, USA, where Vasarhelyi is affiliated, stands as the most prolific institute with eight articles. Guido Geerts receives 177 references from his two articles, earning him the title of the most cited author in the realm of design science in accounting research, while the University of Delaware, where he is affiliated, is also the most cited university. Among countries contributing to this field, the United States leads with the highest number of productive articles and references, totaling 33 articles and 555 references. The International Journal of Accounting Information Systems has published the most articles (20) and received the most references (464). The findings of this research illuminate bibliographic factors, relationships, and thematic orientations within design science research in accounting. They inform researchers and policymakers about the current status and trajectory of this methodology, providing a foundation for the advancement of solution-oriented and applied research in the field of accounting.
 

Introduction

Applied research that seeks solutions to practical issues cannot be pursued through natural science research methods as they aim to design and implement solutions to improve the current situation. For this purpose, the methodology of design science (Simon, 1996) was introduced. Although accounting is a practical field of knowledge, this methodology is less known and utilized in accounting, until the last five years, when it was embraced by accounting and auditing researchers. Thus, in this study, we investigate the bibliometric factors and trends in accounting research using the design science research methodology (DSRM) to answer the following questions:
RQ1: What are the main topics of articles related to design science research methodology?
RQ2: What are the emerging topics in design science research in accounting?
RQ3: Which are the most cited articles, the most prolific authors, the most prolific universities, the most prolific journals, and the most prolific countries in DSRM in accounting?

Literature review

DSRM is a research methodology that focuses on problem-solving (March & Storey, 2008), and its purpose is to create and evaluate artifacts that are used to solve organizational problems through transforming the current state into a desired state (Hevner et al., 2004; March & Smith, 1995; March & Storey, 2008). Considering the focus of this science on problem-solving, the application of design science research can potentially reduce the existing gap between theory and practice (Aken, 2004, 2005; Romme, 2003).

Methodology

Bibliometric analysis is the application of quantitative techniques (e.g., citation analysis) to bibliometric data (e.g., publication and citation units) (Broadus, 1987; Pritchard, 1969). Researchers apply bibliometric analysis for various reasons, such as discovering emerging trends in the performance of articles and journals, collaboration patterns among authors and research components, and discovering the intellectual structure of a specific field in existing literature (Donthu et al., 2021).
In this research, in the first step, the Scopus database was used due to the inclusion of more scientific documents than other databases (Echchakoui, 2020). Then, the relevant keywords were identified and selected, and by setting the query phrase, applying it to the Scopus database and performing the necessary filters, a total of 58 articles from the journals ranked in 2023 rankings by the Australian Business Deans Council (ABDC) were obtained. This number decreased to 51 articles as the basis of analysis after reviewing the content by the authors and discarding unrelated articles. In this research, the VOSviewer software (Eck & Waltman, 2021) was chosen for bibliographic data analysis and visualization. Also, the matplotlib and wordcloud libraries in Python programming language were used for drawing wordcloud, and Microsoft Excel software was used for drawing trend charts.

Results

Our findings reveal that approximately half of the research output is concentrated in the four-year period from 2020 to 2023. The dominant subject areas in design science articles are audit and control, coupled with the integration of emerging technologies and data analytics techniques. The most cited work is Geerts (2011)‎ paper, ‘A design science research methodology and its application to accounting information systems research’ with 140 citations in the Scopus database alone. The most prolific author, Miklos Vasarhelyi, has authored six articles and boasts the most scientific connections with other researchers in this field. The State University of New Jersey, USA, where Vasarhelyi works, stands as the most prolific institute with eight articles. Geerts (2011) receives 177 references from his two articles, earning him the title of the most cited author in the realm of design science in accounting research, while the University of Delaware, where he is affiliated, is also the most cited university. Among countries contributing to this field, the United States leads with the highest number of productive articles and references, totaling 33 articles and 555 references. The International Journal of Accounting Information Systems has published the most articles (20) and received the most references (464).

Discussion

The recently observed surge in publications indicates a growing interest among accounting researchers in this methodology. However, auditing literature hosts more DSR research (nearly half) than financial accounting and other branches. According to co-word analysis results, the design of auditing artifacts based on emerging technology is the predominant research trend, pursued by researchers to enhance audit quality and integrate emerging technologies into the auditing practice. These trends suggest an increasing emphasis on advanced audit and tech research in the future, with a focus on robotic process automation, analytics, and machine learning. In terms of actors at the levels of author, institution, and country, dominance lies with American contributors. Notably, journals that accept DSR papers are primarily technology-related, and mainstream accounting journals, such as The Accounting Review, have not yet embraced this research paradigm.

Conclusion

This is the first attempt in accounting literature to conduct a bibliometric study on the research method known as DSR. Given the practical nature of accounting and the criticisms of low practical relevance of accounting research, scholars in the field have turned to DSR in recent years to undertake problem-solving inquiries through the design and evaluation of artifacts. Prospective researchers can benefit from examining seminal and highly cited papers and exploring current hot topics identified by this study to become acquainted with applying this research methodology and selecting trending topics for further inquiries.
 

Abstract The purpose of this study is to examine the relationship between financial expertise and the experience of the audit committee chairman with auditor selection, audit fees, and audit quality. To achieve the research goal, a sample equal to 99 companies listed on the Tehran Stock Exchange during the period from 2015 to 2023, equivalent to 792 company-years, was analyzed using multiple regression analysis based on combined data. The findings showed that the companies whose heads of the audit committee possess financial expertise are more likely to choose the Audit Organization or audit institutions with quality control ‘A’ as their independent auditors. Also, according to the findings, the financial expertise of audit committee heads leads to an increase in audit fees and audit quality. However, this study did not identify a significant relationship between the audit committee chairman's experience with auditor selection and audit fees, but a positive and significant relationship between the audit committee chairman's experience and audit quality was identified. The findings of this study contribute to the literature by documenting that financial expertise and experience of audit committee heads are important for improving the audit process and audit quality.
­1. Introduction
In recent years, the significant impact of the audit committee on the effectiveness of the audit process has been confirmed by various researchers (Azizkhani et al., 2023). The chairman of the audit committee is considered the chief executive officer of the audit committee (Ernst & Young, 2013). It is necessary for the chairman of the audit committee, as a leader, to understand the culture of the organization, set clear expectations for the committee members, and consider both management and auditors in their decisions. The chairman of the audit committee, who is more responsible than other members of the committee, plays a vital role in controlling financial reporting and evaluating the effectiveness of the audit committee (Bromilo & Keeler, 2011). The chairman of the audit committee plays a key role in ensuring the quality of financial reports through cooperation with the members of the audit committee, setting the agenda of the committee, communicating with the board of directors, management, and independent auditors, and helping to select the members of the audit committee (Azizkhani et al., 2023). In Iran, the audit committee is one of the basic committees of a company. In 2013, the Securities and Exchange Organization required all listed companies to form an audit committee. This committee is responsible for supervising the work of internal and independent auditors, proposing independent auditors to the general meeting of shareholders for the purpose of appointing, determining the fees, and dismissing independent auditors, reviewing the frequency of audits, receiving audit reports, and ensuring that corrective actions are taken in a timely and correct manner. It is the responsibility of management to address weaknesses and shortcomings, non-compliance with policies, laws, and regulations, and resolve other problems identified by the auditors (Nazari et al., 2019).

Methodology

The present research is a descriptive, correlational study in terms of its applied purpose and the relationship between variables. The data and information used are historical and post-event. The statistical population of this research includes all the companies listed on the Tehran Stock Exchange. The statistical sample of the research comprises all the companies that were active in the stock market from the beginning of 2015 to the end of 2023 and meet the following conditions: 1. Their membership in the Tehran Stock Exchange must have continued throughout the research period. 2. The data needed for the research must have been available to them during the research period. 3. They must not belong to investment, financial mediation, holding, bank, or leasing companies. 4. The end of the financial year for these companies should not have changed during the research period and must coincide with the end of March. Finally, after applying the above conditions, 99 companies (equivalent to 792 company-years) were selected as the statistical sample. To collect the data, the database of Rahavard Novin and the reports published on Codal were used. Research hypotheses were tested based on combined data and using multivariate regression models.

Result

In this study, the effect of financial expertise and the experience of the head of the audit committee on auditor selection, audit fees, and audit quality was investigated. The findings indicate that the heads of the audit committee who possess accounting and financial expertise are more likely to choose a first-rate auditor (The Audit Organization or audit institutions with a quality rating of ‘A’) as an independent auditor. Additionally, audit committee heads with accounting and financial expertise tend to pay higher audit fees and enhance audit quality. These findings are consistent with the results of studies by Azizkhani et al. (2023), Lari Dasht Beyaz et al. (2017), and Ghafaran and Yasman (2018). Therefore, the accounting and financial expertise of the head of the audit committee, as an important and influential factor in the audit process, should receive attention from supervisory and legislative institutions. Due to its significance, it should become a legal requirement for companies listed on the Tehran Stock Exchange.

Conclusion

Although the accounting and financial expertise of the head of the audit committee was identified as an influencing factor in the selection of the auditor and the audit fee, the results of this study showed that the greater experience of the heads of the audit committee does not lead to the selection of a first-class independent auditor and does not significantly affect the audit fee. This finding is not compatible with the results of the studies by Elsayani et al. (2023) and Lari Dasht Beyaz et al. (2017). However, the findings indicate that the greater experience of the heads of the audit committee increases the quality of the audit, which is consistent with the findings of the study by Azizkhani et al (2023). These results indicate that the accounting and financial expertise of the head of the audit committee, as an internationally proven factor, demonstrates the expected performance in companies listed on the Tehran Stock Exchange. However, the experience of the head of the audit committee is not as effective as accounting and financial expertise. In this regard, it may be possible to attribute the weak role of audit committee heads in the selection of auditors and audit fees in our country as a reason for this lack of influence. It is expected that with the passage of time and future legal and regulatory reforms, audit committees will become more efficient and effective, and their heads will play a greater role in improving the audit process.

Abstract Purpose: The rapid development of technology and extensive environmental changes have accelerated economic growth, and the increasing competition among enterprises has restricted access to profit and increased the probability of enterprises ' financial distress. Due to the effects of high costs of financial distress, its prediction has attracted the attention of researchers since the beginning. Therefore, this paper aims at a bibliometric analysis of financial distress research in the accounting, management and economic areas. Design/methodology/approach: The research method is based on a three-step protocol of dataset setting, dataset refining, and analyzing the data. First, the published articles in the financial distress field were collected from the Web of Science database. Second, the document information was refined, and 801 articles were chosen for literature review in this area. Finally, we used the bibliometric analysis toolbox to investigate the documents. Also, bibliometric analysis in this research was conducted using VOSviewer software. Findings: The findings of this research indicate the existence of six main streams of research (methods of predicting financial distress, predictors of financial distress, restructuring strategy, corporate governance, bank bankruptcy and earnings management) in the field of financial distress. Additionally, the results highlight the importance of social responsibility of the company, also demonstrate that improvements in technology, particularly the use of artificial intelligence tools, have enhanced predicting accuracy.
 
 
 

Introduction

In the life cycle of any company, while there are many opportunities for growth, prosperity, and success, there are also situations where the company may face decline, crisis, and failure. Theoretically, it is assumed that business companies operate indefinitely with the aim of making a profit.
However, in the modern era of the global economy, companies not only become significantly more established but also face financial distress more frequently than in the past. In other words, due to globalization and the integration of national economies, the incidence of business failures and bankruptcies has risen. Financial failure is not an instantaneous event but a dynamic and generally lengthy process that affects the company's capital structure, investment policies, and performance. Therefore, identifying the factors of financial distress enables the prediction of an enterprise's financial distress.
Identifying the factors influencing the financial distress of companies, firstly, enables the taking of appropriate actions by providing necessary warnings. Secondly, investors can distinguish favorable investment opportunities from unfavorable ones and invest their resources in situations and places where they are less likely to lose money.
Given the importance and effects of financial distress and the high rate of failure of current businesses, a literature analysis in this area appears necessary. A review of the literature in the field of financial distress uncovers a multitude and variety of topics in past research. Thus, it is crucial to conduct a systematic review of past research to understand its intellectual structure. Moreover, the keywords used in past research represent the field’s main ideas and topics. Therefore, this study is going to draw the intellectual structure of financial distress research through quantitative techniques of co-word analysis, citation, co-citation, bibliometric, and co-authorship analysis.

Research Question(s)

This research, employing bibliometric analysis, reviewed the literature on financial distress in the fields of accounting, management, and economics. It also analyzed the content of articles in this field to answer the following questions:
RQ1. What is the trend of publications in financial distress research?
RQ2. What is the citation structure in the financial distress research?
RQ3. What are the fundamental streams of financial distress research?
RQ4. What are the emerging themes in the financial distress research?

Methodology

The research method is based on a three-step protocol: dataset setting, dataset refining, and analyzing the data. First, the published articles in the financial distress field were collected from the Web of Science database. Second, the document information was refined, and 801 articles were chosen for literature review in this area. Finally, we used the bibliometric analysis toolbox to investigate the documents. Additionally, bibliometric analysis in this research was conducted using VOSviewer software.

Results

Our findings indicate an increasing trend in the number of research studies on financial distress literature over the past six years, with approximately 54% of articles published during this period.
We also document that "In Search of Distress Risk" is the most cited paper, receiving 881 citations in the Web of Science database; "Altman" is identified as the most influential author; and the USA emerges as the most influential country in this research field. This predominance can largely be attributed to the fact that most journals indexed in the Web of Science in the fields of accounting and finance are associated with the United States. Consequently, it is evident that the publication of articles by universities and researchers based in this country is more prevalent than in other countries worldwide. The findings of this research reveal the existence of six main streams of research: methods of predicting financial distress, predictors of financial distress, restructuring strategy, corporate governance, bank bankruptcy, and earnings management in the field of financial distress. Additionally, the results of the research not only underscore the importance of a company’s social responsibility but also highlight how technological advancements, particularly the use of artificial intelligence tools, have enhanced the accuracy of financial distress predictions.

Discussion and Conclusion

In this study, first, the evolution of literature in this field has been reviewed through bibliometric analysis over the last four decades. Secondly, from a performance perspective, the indicators related to the article, citation indicators, and combined article and citation indicators have been examined. Additionally, scientific mapping of articles in this field has been conducted through citation analysis, co-citation analysis, co-authorship analysis, and co-word analysis. Finally, clustering and content analysis of the articles in this field have been performed.
First, performance analysis was conducted to answer the first two research questions. The research findings confirm that during the last four decades, the literature on financial distress has significantly grown. Examining the growth trend of the articles’ number indicates the effect of changes in the business environment on financial distress. Thus, this trend shows an increase in the number of articles from 2010 onwards, the reason for which is attributed to the financial crisis of 2008, which caused many companies to face financial distress due to the impossibility of financing. Additionally, the trend of published articles shows a significant increase in articles during the period of COVID-19 and after (2020, 2022, 2023). The limitation caused by this public crisis (COVID-19) has increased the possibility of financial distress for companies, and many researchers have investigated this issue. Secondly, to examine the third question of the research, co-citation and bibliographic coupling analysis have been used. As indicated in the mentioned findings section, the studies conducted can be classified into three clusters: predicting financial distress, which is mainly based on accounting data criteria; a cluster of default risk and systematic risk, which provides information about the prospects of the company and the volatility of assets; and finally, the cluster of restructuring strategies, which includes studies that seek to exit this cycle of financial distress using these strategies. The Bibliographic coupling analysis indicates that six main streams of research (financial distress prediction methods, financial distress prediction factors, restructuring strategy, corporate governance, bankruptcy of banks, and earnings management) exist in the financial distress field.
Thirdly, the co-word analysis was conducted to answer the fourth question of the research. The increase in the frequency of the words ‘machine learning’ and ‘social responsibility of the company’ in recent years indicates the development of advanced techniques and models in data mining. This development has become so widespread that a large number of research papers are published every year in many fields, including finance, using techniques and algorithms of artificial intelligence and machine learning. Additionally, regarding social responsibility, this trend suggests the primary purpose of enterprises has shifted from profit maximization to increasing shareholder wealth and protecting the interests of other stakeholders, including society and the environment. Therefore, it is expected that future studies will focus increasingly on social responsibility and sustainability.
 
 

Abstract The accounting information quality and its relationship with financing decision-making is one of the important issues that attract interest from researchers. However, the way accounting information quality affects financing costs during the COVID-19 pandemic is a topic that has not been explored in domestic research. The purpose of this research is to investigate the effect of the accounting information quality on the cost of debt and to explore how this effect mainfested during the pandemic of COVID-19. In this regard, the data from 137 firms listed on Tehran Stock Exchange for 2012-2022 (1057 firm-years) have been analyzed. The generalized least squares (GLS) approach was employed to fit the models and fixed effects for years and industries were also controlled. The research results for the entire period demonstrate that an increase in accruals quality (as a proxy for accounting information quality) leads to the cost of financing through debts and this decrease is more pronounced for innate accruals quality than for discretionary accruals quality. Furthermore, the findings suggest that during the period of the COVID-19 pandemic, the impact of accruals quality and its innate and discretionary components on the cost of debt diminished. The results of the robustness tests using decile-ranked values of accruals quality support the main findings.

Introduction

The global pandemic of COVID-19 and the economic recession related to it brought many challenges to companies in most countries (Barai & Dhar, 2021). Due to the widespread effects of this disease and the various and costly measures taken by countries to control this pandemic, during the outbreak of COVID-19, the economic activities of companies faced a serious challenge (Aljughaiman et al., 2023). COVID-19 had a significant negative impact on the employment level of the workforce, reduced economic activity, and created high levels of uncertainty in many financial markets (Zhang et al., 2020). These conditions have most likely hurt the accounting information quality (Pham et al., 2023; Chen et al., 2023) and due to the inverse relationship between the accounting information quality and the cost of debt, it has led to an increase in the cost of debt. However, most of the empirical evidence in this regard is related to developed countries such as the United States, the United Kingdom, and Australia, and the evidence on emerging markets (such as the Iranian capital market) is limited in this regard. Therefore, this study aims to investigate the relationship between the accruals quality and the cost of debt and to compare the extent of this relationship during the COVID-19 pandemic and other years.

Literature Review

In accounting, accruals refer to a part of earnings that does not carry cash flow and is a product of the accrual accounting system. Therefore, accruals represent the difference between earnings and cash flows (Nallareddy et al., 2020). Since accruals are affected by managerial discretion, the accruals quality can be used to evaluate the accounting information quality and predict future cash flows (Le et al., 2021). The COVID-19 pandemic has significantly affected the global economy (Zhu & Song, 2021), involved many businesses in financial difficulties (Albitar et al., 2020) and intensified their dependence on resources provided by creditors and investors (Shen et al., 2020). Most likely, these conditions have affected the accounting information quality (Pham et al., 2023). During the COVID-19 pandemic, most companies have had enough motivation for earnings management (Lassoued & Khanchel, 2021). However, earnings management causes the financial information reported by companies to be inconsistent with their actual situation, and this means reducing the accounting information quality (Tariverdi et al., 2012). According to these materials, the research hypotheses are presented as follows:
H1: An increase in the quality of accruals causes a decrease in the cost of debt.
H2: In the period of the COVID-19 pandemic, the intensity of the effect of accruals quality on the cost of debt has decreased.

Methodology

This research is practical, analytical, quasi-experimental, correlational in terms of research purpose, and retrospective and post-event in terms of the time dimension of the data. To collect financial and accounting data, Rahvard Novin database and reports published on Codal website were used, and Stata software was used to analyze the data. To fit the models, the generalized least squares approach was used.

Results

The results show that compared to other years, during the COVID-19 pandemic, the accruals quality (the cost of debt) has decreased (increased) by 27% (35%). Also, the results indicate that an increase in accruals quality decreases the cost of debt. Furthermore, our results show that compared to other years, during the COVID-19 pandemic, the intensity of the effect of the accruals quality on the cost of debt has decreased.

Discussion

The research findings show that an increase in accruals quality significantly decreases the cost of financing. So, in order to reduce financing costs from debts, managers are advised to be diligent in improving the companies' accounting information quality. Finally, our results show that the cost of debt has increased during the COVID-19 pandemic, due to the decline in accruals quality and its components.

Conclusion

Our results show that with the increase in the quality of accruals, the cost of financing through debts has a significant decrease, and this decrease is more for the innate components of accruals quality than for its discretionary part. In addition, the findings indicate that during the COVID-19 pandemic, the intensity of the effect of the accruals quality and its innate and discretionary components on the cost of debt has decreased. The results of supplementary tests confirm the research main findings.