Accounting report
Jafar Babajani; Mohammad Javad Salimi; Mhammad taghi Taghavi fard; Ehsan Mohebi
Abstract
Regional Electric companies are organizations that pursue both social and financial goals in order to fulfill their assigned missions, so fulfilling accountability for their dual goals is of fundamental importance. In this research, by examining the information needs of the users of the financial reports, ...
Read More
Regional Electric companies are organizations that pursue both social and financial goals in order to fulfill their assigned missions, so fulfilling accountability for their dual goals is of fundamental importance. In this research, by examining the information needs of the users of the financial reports, the factors affecting the financial reporting of the sector have been studied. The aim of this research is to present a model for the environmental conditions and characteristics of regional electric companies in Iran. For this purpose, the required data, after a library study and exploratory search in the theoretical foundations and financial and accounting rules and regulations governing the relations of these entities, were collected using a questionnaire and analyzed using the fuzzy Delphi research method and appropriate statistical tests. The evidence from the analysis of the respondents’ views shows that the influencing factors are in four dimensions, including the compatibility of the model in achieving the organization's goals, the needs of information users, compliance with financial and accounting laws and regulations, and finally, budget control and credit status reporting. Experts also agree on the factors proposed by this research for designing and explaining the financial reporting model of regional power companies in Iran.Introduction The government and other public sector institutions provide many goods and services essential to society. One of the most significant areas in which the government engages in commercial activities is the energy sector, particularly the electricity industry, which plays a key role in social and economic development and in improving the quality of life in society. The financial resources of the country’s regional electricity companies are derived from various sources and must be utilized for specific purposes in compliance with various laws and regulations.Given the fundamental importance of performance and the evaluation of accountability by authorities to stakeholders in democratic governments, it is necessary to produce clear and reliable reports on how resources are allocated and consumed in different areas. This research seeks to identify the weaknesses and shortcomings of the financial statements of these institutions by reviewing existing literature and employing other methods. Ultimately, the study presents a suitable model for the financial reporting of these institutions, enabling improved accountability and more effective economic decision-making.Research QuestionWhat is the financial reporting model of Iran's regional electricity companies?Literature ReviewSayedi and Babajani (2011) conducted research with the aim of achieving a desirable model of financial reporting in Islamic capital markets. The findings of their research confirmed the usefulness of relying on the fund theory to achieve reporting goals. The result of their study led to a financial reporting model in which the central focus is not the economic entity but rather the main business activities and departments of the company.Babajani and Shekarkhah (2012), using the Delphi method, investigated the appropriate accounting model for Islamic banking in Iran. According to their findings, the accounting system used by experts was unable to meet user needs and required changes, the generalities of which were presented as key factors in the proposed research model. Additionally, the research indicated that a conceptual framework based on accountability is more suitable than one based on decision-usefulness for financial reporting in the usury-free banking system.Mohammadi et al. (2020), in their research to develop a desirable model of financial reporting in the public sector, addressed the key factors influencing public sector financial reporting. The results showed that the quality of public sector financial reporting is influenced by factors such as budgeting structure, public sector infrastructure, the quality of human resources, the accounting system and basis, education, and the accountability system governing society. Weaknesses identified in the research include poor implementation of accrual accounting, incomplete implementation of operational budgeting, political influence in decision-making processes, lack of access to the annual budget performance statement and budget deduction report, and non-identification of certain financial statement items.MethodologyThe current research is an applied and developmental study. It aims to analyze existing conditions and assist in the decision-making process, classifying it as descriptive research. Furthermore, since it seeks to gather the opinions of a large statistical community on the research subject, it is categorized as descriptive-survey research.Using the fuzzy Delphi method, the statistical population includes experts selected based on three criteria: the presence of representatives from expert groups, deep knowledge of the research topic, and breadth of opinion and expertise. These experts were chosen from groups such as auditors, the head of the State Court of Audit, auditors of executive bodies, directors of audit organizations, and academic faculty members with relevant experience. Participants were selected through snowball sampling.Initially, to identify the dimensions, components, and indicators of the Financial Reporting Model for Regional Electric Companies in Iran, a review of the subject literature was conducted. After identification, examples of these cases in the public sector were examined based on expert opinions. Given the advantages of the fuzzy Delphi method (29FDM) compared to the traditional Delphi method (30TDM), the fuzzy Delphi method was employed in this research.ResultsBy examining the needs of users and the current state of financial reporting for regional electric companies, which is affected by several factors, it was found that the financial reporting models of private sector for-profit institutions cannot fully address the information needs of users in this sector. The findings of this research revealed that the operating environment and user needs in this sector differ significantly from those of private-sector for-profit institutions. These differences have created challenges in aligning the information needs of users with the form and content of the current financial reports, leaving report users facing difficulties.In this research, by identifying and analyzing the factors influencing an appropriate financial reporting model for Iran's regional electric companies, a step has been taken to better meet the information needs of users. Identifying the set of influencing factors for the proposed model, in accordance with the conditions and laws governing the financial and accounting systems of this sector, and determining the importance of each factor in the desired framework are among the key findings of this research effort.DiscussionAccording to the findings of the research, the consistency of the model in reporting the degree of achievement of the set goals of regional electric companies, the consistency in supporting the goals of information users, its compliance with financial and accounting rules and regulations, as well as budget control and credit status reporting, were identified as the effective dimensions of the reporting model. Each of these dimensions comprises several components and indicators.ConclusionThis research aimed to present a financial reporting model for Regional Electric Companies in Iran. Using the fuzzy Delphi method and based on expert opinions, the dimensions, components, and indicators of the proposed model were identified and presented.
Accounting report
Seyed Ali Hosseini; Shima Ahmadi; Hossein Seilsepoor
Abstract
Given the significance of sustainability reporting, there has been a notable increase in studies in this field. However, due to shortcomings in initial studies, it is not feasible to make decisions based solely on their findings. This research provides a comprehensive examination of the impact of corporate ...
Read More
Given the significance of sustainability reporting, there has been a notable increase in studies in this field. However, due to shortcomings in initial studies, it is not feasible to make decisions based solely on their findings. This research provides a comprehensive examination of the impact of corporate governance structures on sustainability reporting, based on the results of previous studies. Ownership structure, board of directors, management characteristics, corporate governance performance, and the quality of internal controls are identified as influential factors. While the research literature has reached a consensus on the impact of some factors, it has encountered contradictory findings regarding others.IntroductionIn recent years, the issue of sustainability has garnered global attention, becoming a central focus for many accounting researchers. International organizations have published sustainability reporting standards, and many stock exchanges worldwide now consider sustainability reporting a prerequisite for listing. Companies publish sustainability reports for various reasons, including transparency with stakeholders (Kuo et al., 2016), reputation (De Grosbois & Fennell, 2022), legal compliance (Harjoto et al., 2020), or alignment with emerging trends (Busco et al., 2019).However, due to the voluntary nature of sustainability reporting in many countries, concerns about the quantity and quality of this information persist. Since management often decides whether to publish sustainability reports, when to publish them, the publication platform, and the content and scope of the reports, voluntary disclosure, and impression management strategies provide significant opportunities for managers to obscure poor sustainability performance. Therefore, mechanisms are necessary to ensure that the information provided in sustainability reports is of high quality.Corporate governance mechanisms, such as ownership structure, ownership concentration, audit quality, and board composition and quality, play a critical role in reducing opportunistic behaviors by controlling and monitoring executive managers. Given the importance of corporate governance mechanisms for sustainability reporting, there has been a recent surge in studies exploring this relationship.However, early studies in this field are often limited by shortcomings such as researcher bias, small sample sizes, differences in legal frameworks, and contradictory findings. These limitations hinder the ability to make reliable decisions based on their results, highlighting the need for more comprehensive research. Accordingly, this study provides a systematic review of the impact of corporate governance structures on sustainability reporting, synthesizing findings from prior research.The main research questions are as follows:What are the most frequent keywords in the field of sustainability reporting over time?What are the most frequent keywords in the field of the relationship between corporate governance structures and sustainability reporting over time?which corporate governance mechanisms influence the adoption, quantity, and quality of sustainability reporting?MethodologyThis study is applied research and follows an interpretive paradigm. Aligned with this paradigm, a qualitative research methodology was chosen, incorporating systematic review and content analysis for data collection, as well as bibliometric analysis to identify trends in sustainability reporting research and leading authors in the field.The research sample comprises 47 international and 32 national articles published between 2013 and September 2023. Domestic studies were selected through keyword searches on the websites of journals approved by the Ministry of Science, while international studies were sourced from the ScienceDirect database. To enhance search sensitivity and comprehensiveness, various keywords, the "OR" operator, and truncations of selected keywords were employed in ScienceDirect. Both quantitative and qualitative research articles were reviewed. Following the example of other literature reviews (Han & Cohen, 2013:8), books and editorial notes were excluded, with only peer-reviewed articles considered. The latest version of the PRISMA checklist (2020) was used to guide the development of the review protocol.To identify hot research topics in sustainability reporting, research topics exploring the relationship between corporate governance structures and sustainability reporting, and the most prominent authors in the field, bibliographic analysis, and VOSviewer software were utilized.Results and DiscussionExamining the hot topics in sustainability reporting has revealed that corporate governance structures have been among the most significant areas of focus in recent years. Bibliographic analysis indicates that mechanisms such as the board of directors, assurance, and risk management have been key topics of interest for authors.A review of past studies shows that factors such as ownership structure, board of directors, management characteristics, gender diversity, corporate governance performance, assurance, monitoring and accountability, corporate risk, and internal control quality significantly affect the adoption, quantity, and quality of sustainability reports. For example, ownership structure encompasses institutional ownership, internal ownership, foreign ownership, ownership concentration, the relative power of minority shareholders, shareholder identity similarity, state ownership, capital market acceptance, family ownership, fund ownership, and ownership by other companies. Similar detailed categorizations exist for other factors.Most studies have focused on the influence of corporate governance mechanisms on the adoption of sustainability reporting, while fewer have examined their impact on report quality. There is a consensus among researchers on the impact of certain governance mechanisms, such as board size and independence, sustainability committees, managerial compensation, and gender diversity, on sustainability reporting. However, regarding the influence of other factors, the research literature contains contradictory findings. Additionally, for some factors, such as the number of managers, managers’ religious attitudes, and audit fees, the limited number of studies makes it difficult to draw definitive conclusions. Information on measurement indicators based on sample studies is also provided, aiding researchers in measurement purposes.Given the widespread impact of corporate governance structures on sustainability reporting, governments, and regulators should implement initiatives to influence board structures and other corporate governance mechanisms. The findings suggest that investors seeking to maximize their returns should invest in companies with strong corporate governance structures. This study enhances the understanding of managers, regulators, and stakeholders regarding the role of corporate governance in sustainability reporting and provides valuable insights for regulators and policymakers concerned about achieving sustainability reporting goals.By summarizing the impact of corporate governance structures on sustainability reporting, this study identifies gaps in the research literature and mechanisms requiring further investigation. Additionally, juxtaposing findings from domestic and international studies, it highlights cultural differences in the effects of corporate governance mechanisms. Analyzing the findings of this study while considering its limitations is crucial. Existing studies in the research sample employed various measures to assess the quality and extent of sustainability reporting. The documentation reviewed as sustainability reports also varies. For instance, some researchers analyzed sustainability reports, while others examined information provided on company websites. Domestic researchers, due to the lack of sustainability reports published by companies listed on the Tehran Stock Exchange, have relied on analyzing board reports and financial statements to assess the extent and quality of sustainability reporting. Since measurement procedures affect the results obtained and, consequently, the findings of this study, these limitations must be considered when interpreting the results. ConclusionThe analysis of contradictory findings can be explained by considering management motives, organizational maturity levels, organizational structure, and institutional factors affecting the organization, such as industry type, country of operation, and regulations. Therefore, using standardized measures for companies operating in diverse institutional contexts is unlikely to be effective.
Accounting and various aspects of finance
Saman Mohammadi; Hanieh Jaberi
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 ...
Read More
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.
Accounting tools
Mohammad Nazaripour
Abstract
Digital accounting systems play a crucial role in managing financial transactions, recording data, and facilitating decision-making processes. The aim of the current research is to identify and analyze the factors influencing companies’ intention to use digital accounting systems. This study is ...
Read More
Digital accounting systems play a crucial role in managing financial transactions, recording data, and facilitating decision-making processes. The aim of the current research is to identify and analyze the factors influencing companies’ intention to use digital accounting systems. This study is practical in nature and employs a descriptive survey method for data collection. Data were gathered through questionnaires distributed to 275 accountants and analyzed using structural equation modeling. In this research, the information systems success model (ISSM), the technology acceptance model (TAM), the expectation-confirmation model (ECM), and a combined model were applied to test 11 research hypotheses. The findings revealed that system quality, information quality, perceived usefulness, perceived ease of use, confirmation, and satisfaction significantly and positively influence companies' intention to continue using digital accounting systems. Overall, the findings demonstrate that a proper understanding of the factors affecting the continuance intention of digital accounting systems plays a key role in their acceptance and long-term use.
Introduction
Information technology (IT) plays a key role in the success of various fields, including accounting. IT helps organizations cope with changes and gain a competitive advantage (Almaqtari et al., 2023). Organizational managers and market participants require reliable, sufficient, and timely financial/accounting information to make accurate decisions (Al-Hattami and Kabra, 2022). Digital accounting systems (DAS) serve as a key tool for achieving this objective (Alawaqleh and AlSohaimat, 2017). In the business sector, DAS plays a prominent role in managing financial transactions, recording data, and facilitating decision-making.
The effective use of DAS necessitates considering the factors influencing companies’ intention to adopt and continue using it. A review of the literature indicates that, to date, few studies have focused on identifying and evaluating the factors affecting the intention to continue using DAS, particularly at the organizational level. Models such as the IS success model (ISSM) by DeLone and McLean (1992), Davis’s (1989) technology acceptance model (TAM), and Bhattacherjee’s (2001) expectation-confirmation model (ECM) are widely recognized for their applicability to analyzing specific systems and technologies. These models are extensively used due to their adaptability to different environmental contexts. The present study investigates the factors influencing organizational users’ intention to adopt and continue employing DAS by applying the three aforementioned models and a combined model.
Methodology
The present study included seven constructs: system quality, information quality, perceived usefulness, perceived ease of use, confirmation, satisfaction, and intention to continue using DAS. The research constructs were measured using scales adapted from previous studies. The items for the constructs were rated on a 5-point Likert scale. A questionnaire was employed to collect data, and a total of 285 usable questionnaires were obtained. The population of this study consisted of accountants from manufacturing companies in Tehran Province. The sample size was determined using the convenience sampling method. The reliability of the constructs was assessed using composite reliability (CR) and average variance extracted (AVE), while their validity was evaluated through convergent and divergent validity. Structural equation modeling was used to test the research hypotheses and model.
Results and Discussion
According to the research findings, the variables of system quality (SQ), information quality (IQ), perceived usefulness (PU), perceived ease of use (PEU), and satisfaction (SAT) have a significant positive effect on the intention to continue using digital accounting systems (ICU-DAS). Furthermore, SQ, IQ, PU, PEU, and confirmation (CON) have a significant positive effect on SAT. In addition, PEU has a significant positive effect on PU. Based on unstandardized coefficients (B), a one-unit increase in SQ, IQ, PU, PEU, and SAT can result in an increase of 0.353, 0.137, 0.154, 0.283, and 0.186 units in DAS, respectively. Similarly, a one-unit increase in SQ, IQ, PU, and CON can result in an increase of 0.262, 0.178, 0.194, and 0.258 units in SAT, respectively. Finally, a one-unit increase in PEU causes an increase of 0.247 units in PU.
In this research, the mediating effects of PU and SAT were tested. PU mediates the relationship between CON and SAT, with 0.081 units of the total effect (0.339 units) attributable to the mediator variable. Furthermore, SAT mediates the relationship between the four variables of PEU, IQ, SQ, and PU with ICU-DAS. For instance, in the relationship between PEU and ICU-DAS, 0.047 of the total effect (0.331) is due to SAT. As both direct and indirect effects are significant in all five relationships, it can be concluded that the mediating effects in all five relationships are partial. The coefficient of determination (R2) for the IS success model (ISSM), technology acceptance model (TAM), expectation-confirmation model (ECM), and the combined model were 32%, 39%, 31%, and 45%, respectively.
Conclusion
This research developed a new model by combining the IS success model (ISSM), technology acceptance model (TAM), and expectation-confirmation model (ECM). The results demonstrated that the explanatory power of the combined model was higher than that of the three individual models. According to the findings, SQ, IQ, PU, PEU, CON, and SAT significantly affect ICU-DAS. For example, the information quality, by promoting the accuracy and reliability of financial information, can increase the intention to continue using DAS.
Based on the findings, identifying and understanding the factors affecting the intention to continue using digital accounting systems can help company managers and policymakers make informed decisions regarding the adoption and long-term use of such systems. Organizations can enhance the acceptance and continuous use of systems (including DAS), by improving SQ, IQ, and employee satisfaction. Moreover, organizations can effectively monitor the planning and implementation process through the application of DAS. Finally, technology vendors and accounting software providers can increase their revenue by improving the quality of their products and services.
Financial audit
Alireza Saadati; Negar Khosravipour; Mohammad Ali Bidari
Abstract
The purpose of this research is to contextualize the strategic thinking of auditors' bricolage functions in controlling the occurrence of auditing profession pressure spillover disorders. In the qualitative phase of this study, the functional areas of auditors' bricolage strategic thinking and the disorders ...
Read More
The purpose of this research is to contextualize the strategic thinking of auditors' bricolage functions in controlling the occurrence of auditing profession pressure spillover disorders. In the qualitative phase of this study, the functional areas of auditors' bricolage strategic thinking and the disorders caused by auditing profession pressures were identified. Using grounded theory and systematic content screening, followed by the implementation of the fuzzy Delphi analysis process and verification of the reliability of the identified dimensions, these functional areas were expanded for the study platform. The findings from the qualitative phase indicate the identification of 36 conceptual themes, 6 core components, and 3 categories related to the variables of auditors' bricolage strategic thinking functions. The results further show that by improving the efficiency of auditors’ negotiation abilities through the development of bricolage strategic thinking, conflicts arising from tolerating employer pressure due to the demands of the auditing profession can be controlled more effectively than other identified disorders.
Introduction
The auditing profession, more than any other, demands mental control and the application of critical thinking and skills to provide opinions on the financial performance of business owners. Consequently, it is natural for this profession to involve higher psychological pressure compared to other jobs in the financial field. As a result of these psychological pressures, auditors often face conflicts in their professional work, increasing the likelihood of job pressures spilling over into other aspects of their roles. In other words, the intense job pressures and the mismatch between an auditor’s personal characteristics and the professional demands of auditing can gradually lead to job burnout, ultimately disturbing the individual’s professional balance.
Literature Review
Since auditors, in the field of auditing, on the one hand, safeguard the public interests of stakeholders by validating financial reports, and on the other hand, operate within for-profit entities to earn revenue and provide services to business owners, they face substantial job pressure. Consequently, there is a concern among legislators and general stakeholders that these dual roles may conflict under such pressure. For instance, an employer with significant economic power might pressure an independent auditor to accept fraudulent or questionable accounting practices.
Methodology
This study is exploratory/descriptive in nature from an objective perspective. On one hand, interviews are employed to identify the functional areas of auditors' bricolage strategic thinking. On the other hand, checklists from the critical evaluation list serve as the foundation for identifying the types of disorders caused by the pressures of the auditing profession. This study is considered developmental in terms of result, as the interplay between auditors' bricolage strategic thinking and the overflow disorder of auditing profession pressures lacks theoretical coherence and an integrated content framework, necessitating content and cognitive analysis to expand the dimensions of this knowledge within the audit field.
In terms of data type, this study is mixed-method. In the qualitative phase, the functional areas of auditors' bricolage strategic thinking are first identified through foundational data theory and interviews. Subsequently, during several stages of the systematic content screening process, the types of disorders caused by the overflow of auditing profession pressures are determined. Based on Delphi analysis, the reliability of the identified dimensions is verified, allowing the examined dimensions to be generalized to the study platform. In the quantitative phase, the gray Vicor matrix is employed to compare criteria in row "i" and column "j", identifying the most effective functional field of auditors from the perspective of bricolage strategic thinking. This is achieved by controlling the drivers of overflow disorders arising from the pressures of the auditing profession.
Result
In this study, during the qualitative phase and based on the answers to the first two research questions, an effort was made to identify the functional areas of auditors' bricolage strategic thinking and the disorders caused by the overflow of pressures in the auditing profession. This was achieved through grounded theory analyses and systematic content screening. Following this, action was taken to implement the fuzzy Delphi analysis process and verify the reliability of the identified dimensions, enabling their expansion to the study platform. The results of the qualitative phase, in line with the first and second research questions, indicate the identification of 36 conceptual themes, 6 core components, and 3 categories for the variable of auditors' bricolage strategic thinking functions. Additionally, 5 disorders caused by the overflow of auditing profession pressures were identified. Subsequently, with the aim of integrating these variables through the implementation of the gray Vicor analysis process, the study sought to answer the third research question: under which function of strengthening strategic thinking in auditors can the conflict caused by the overflow of auditing profession pressures be reduced?
The results in this section showed that by improving the efficiency of auditors’ negotiation abilities through the development of bricolage strategic thinking, it can be expected that the conflict caused by tolerance with employers due to the overflow of auditing profession pressures will become more controllable compared to other identified disorders.
Discussion
In analyzing the obtained results, it should be noted that one of the functional fields of strategic thinking, based on the conceptual mechanism of bricolage, is the ability to design a negotiation path with business owners and conclude audit contracts. Through adherence to professional and ethical values, auditors can avoid potential pressures and prevent disruptions (conflicts) in their tolerance toward business owners. Given the wide range of pressures in the auditing profession, auditors often face desperation during negotiations with business owners. This can negatively affect the quality of audit reports and have destructive behavioral consequences, first on auditors’ performance in their professional roles and later extending to their family life.
Conclusion
This study highlights that strengthening bricolage strategic thinking in auditors can effectively manage work-family conflicts and, to some extent, control role ambiguity conflicts, family-work conflicts, and conflicts related to profession attachment. Negotiations conducted with consistent behavioral and professional capabilities, grounded in auditors' cognitive and perceptual approaches, create opportunities to mitigate professional pressures from the outset. This, in turn, enhances the effectiveness of auditors in their professional roles and broader social roles.
Financial Accounting
Mehdi Ebrahimkhani; seyed Hosein shaker Taheri; Mehrdadallah Golizadeh Azariha
Abstract
The purpose of this research is to evaluate the emergence of the radicalism approach in applying fundamental changes in the accounting profession using the interactive qualitative method. This study falls under the category of exploratory research in terms of results and application, and it is goal-oriented ...
Read More
The purpose of this research is to evaluate the emergence of the radicalism approach in applying fundamental changes in the accounting profession using the interactive qualitative method. This study falls under the category of exploratory research in terms of results and application, and it is goal-oriented in nature. Based on the method of data collection, this research is classified as mixed-method. In the qualitative phase, thematic analysis was employed to identify the emerging areas of the radicalism approach in implementing accounting procedures through content analysis and expert interviews. The results indicate that focusing on the radicalism approach can enhance the effectiveness of competitive reporting functions within capital market companies by reshaping the philosophical foundations of the accounting profession. IntroductionIn the early days of accounting’s development, it was viewed solely through an instrumentalist lens, with many thinkers in this field considering it to have no essence beyond its quantitative nature. However, as knowledge in the human sciences expanded across related fields, accounting underwent a significant transformation in its epistemological foundations. It moved beyond a purely quantitative approach and shifted toward a perspective that transcended positivist philosophical backgrounds, embracing social structuralist approaches. During the paradigm shifts in the humanities in the 1980s, accounting, while retaining its objectivity, began to incorporate elements of structural behaviorism. This shift introduced new foundations that helped stakeholders understand the functional aspects of accounting quality and informed their decision-making. Although these changes were initially slow and faced resistance from many traditionalists in the profession, they gradually gained acceptance. By the beginning of the 21st century, accounting knowledge had evolved beyond the traditional practices of the past, adopting more comprehensive approaches that integrated social values into the discipline. Literature ReviewRadicalism, rooted in critical thinking, seeks to prepare social arenas to accept fundamental changes by highlighting various structural and functional weaknesses. The application of this concept to accounting knowledge dates back to the late 1980s, with its peak aligning with the emergence of today's structured technologies in the accounting profession. According to proponents of this school of thought, the accounting profession cannot necessarily function effectively under the constraints of past structures. In other words, emerging structural technologies have dramatically transformed the operational fields of the accounting profession. Delaying the adoption of such an approach can reduce the social trust of information users, going beyond transparency and effective financial performance, as it fails to meet their expectations. MethodologyThis study is considered applied in terms of its results and, from the perspective of its goal, falls into the category of exploratory studies. By utilizing qualitative and quantitative models, it seeks to provide a theoretical framework and evaluate its dimensions within the context of the study. It should be noted that this study does not adhere to a specific methodology but instead employs different methods to address the formulated questions according to the requirements of each section. Based on its data collection approach, this study is classified as mixed research. Additionally, different methods are used for data collection and analysis at each stage of the study, depending on the analytical processes.In the qualitative phase, thematic analysis was employed to identify the emerging areas of the radicalism approach in implementing fundamental changes in the accounting profession. This was achieved through content analysis and interviews with experts. Subsequently, Delphi analysis was conducted to ensure that the reliability of the identified dimensions achieved sufficient theoretical consensus, allowing for their generalization to the target population.In the quantitative phase, based on qualitative/interactive analysis processes, a pairwise comparison was first performed to determine the level of effectiveness (direct, indirect, or ineffective) of the organizing themes emerging from the qualitative phase. These themes were then examined in terms of rows and columns in an "mxm" matrix to identify the drivers and systemic consequences of the radicalism approach in applying fundamental changes to accounting. This was achieved through the construction of a cause-and-effect model. ResultIn this study, due to the lack of sufficient understanding of radicalism as one of the approaches within the critical school of humanities and accounting knowledge, thematic analysis was used to identify the themes of radicalism functions in implementing changes through content screening and expert interviews. A fundamental shift must be undertaken in the accounting profession. During 12 interviews, 278 primary open codes, 36 basic themes, 7 organizing themes, and 4 overarching themes were identified. These dimensions addressed the first research question, forming the theoretical framework. Subsequently, to determine the extent of theoretical consensus, the Delphi process was conducted in two stages. The results confirmed that the 7 identified organizing themes had sufficient content and functional compatibility with the radicalism approach in implementing fundamental changes in the accounting profession, leading the research into its quantitative phase. At this stage, to answer the second research question, a pairwise comparison of the organizing themes was performed. Internal links between the themes were analyzed based on three criteria: output, input, and indicator. This analysis determined the placement of each evaluating organizing theme into one of the stimulus types (primary or secondary) and outcome (primary or secondary). The final evaluation revealed that the most stimulating theme of the radicalism function, in the context of applying fundamental changes to the accounting profession, is the evolution of philosophical ontology This theme has the potential to produce the most impactful systemic consequence of this phenomenon: the evolution of competitive reporting in accounting. DiscussionIn analyzing the obtained results, it is important to understand professional radicalism as a capacity to drive transformation in functional and structural fields. By challenging and breaking the reference frameworks and biased assumptions of the past, particularly in areas such as the accounting profession, new opportunities for development can be created. The results of the system representation model indicate that philosophical ontology in accounting, rooted in professional radicalism, serves as the primary stimulus capable of generating broader consequences in terms of sustainability and enhanced legitimacy in accounting. ConclusionThe results demonstrate that behavioral capabilities, combined with specialized capabilities, enhance the normative function of the accounting unit by promoting more responsible disclosure of information for stakeholders. Under such mechanisms, leading companies can achieve a stronger competitive position by emphasizing social values, such as addressing environmental issues and ensuring greater transparency in financial risks when communicating with stakeholders. Finally, the expansion of the radicalism approach in implementing fundamental changes within the accounting profession provides a key advantage: the evolution of competitive reporting. This evolution enables the disclosure of more comprehensive information, including details about major customers, transactions with related parties, and brand value in the capital market. By doing so, it establishes a reliable model for financial decision-makers.
Financial Accounting
Leila Zamanianfar; hossein alidadi; Danial Heidari; Alireza Altafi
Abstract
The purpose of this research is to develop Caudillo's theory to appraise the strengthening levers of governance hegemony in family ownership. First, through a systematic screening process, the levers that enhance governance hegemony were identified. During the stages of fuzzy analysis, these levers were ...
Read More
The purpose of this research is to develop Caudillo's theory to appraise the strengthening levers of governance hegemony in family ownership. First, through a systematic screening process, the levers that enhance governance hegemony were identified. During the stages of fuzzy analysis, these levers were evaluated for reliability. The results from the qualitative phase indicate the existence of six levers that strengthen governance hegemony in family companies, as identified through the steps of fuzzy Delphi analysis. All dimensions were confirmed to be reliable. Furthermore, based on the credit check process, it was determined that the most favorable fuzzy analysis method, according to participants' scores, is the hierarchical fuzzy analysis using the TODIM approach.IntroductionThe governance system in company management is the foundation for monitoring the balance of interests between the company and its stakeholders. However, based on theories such as agency cost theory, this system can often be perceived as one-dimensional or opportunistic, particularly in the ownership structure of family-owned companies. In other words, governance mechanisms in family companies tend to prioritize the expansion of interests that may not necessarily align with the broader interests of the majority of stakeholders. This misalignment gradually exacerbates the representation gap in the capital market. Therefore, assessing how the concentration of power in such structures affects stakeholder expectations is a critical issue. Beyond past research, this evaluation takes a step forward by examining its dimensions at the market level within companies of this ownership nature. Literature reviewCaudillos, or supporters of Caudillo rule (Caudilloism), represent a type of political and governing party found in one-party government systems. These systems typically revolve around a government structure loyal to a central, powerful figure. The term “Caudillo,” derived from Spanish and meaning "powerful man", describes a leader who forms a management system populated by individuals aligned with their ideology. Over time, this governance approach often leads to discrimination and corruption within the administrative system. While the characteristics of Caudillo governance-such as the pursuit of power and suppression of opposing opinions-may not directly translate to the management structures of companies, drawing thematic analogies can highlight similarities between this political system and corporate governance. A concept closely resembling Caudilloism in corporate governance is family ownership, where power is typically concentrated among the relatives of the company’s founder. In such systems, decisions often aim to satisfy the interests of the central powerful figure, mirroring the dynamics of Caudilloism. MethodologyThis research is practical and through a developmental approach, aims to identify and determine the most significant lever to strengthen sovereign ownership in family-owned companies within capital market contexts, using Todim's fuzzy analysis. Given the incoherence of the theoretical framework, this research contributes to enhancing perceptual effectiveness through a developmental lens, both thematically and analytically. In terms of data type, this research falls into the category of mixed-method research, combining qualitative and quantitative analyses to describe and survey the research topic. The implementation strategy is based on mathematical models and operational research, categorizing it as analytical-mathematical research. Descriptive-analytical research involves not only illustrating what exists but also describing and explaining the reasons behind the situation, including the “how” and “why” of the problem and its dimensions. Such research requires strong argumentative support to explain and justify its findings. This support is achieved through an extensive review of the literature, theoretical discussions, and the development of leverage criteria and general propositions regarding the phenomenon under investigation. In the qualitative phase, meta-composite analysis is used to establish a solid foundation. The researcher logically connects the details of the research problem with its components, enabling meaningful conclusions to be drawn. FindingIn this study, addressing the first research question regarding the levers to strengthen government ownership in family-owned companies, content analysis of research texts was conducted to identify evaluable dimensions. A Delphi analysis was then performed to assess the reliability of these dimensions within the Iranian capital market. The results from the qualitative phase indicated the existence of six levers. Subsequently, to address the second research question, fuzzy analysis based on TODIM was conducted to identify the most prominent dimension in this relationship. The results of the analysis revealed that the lack of independence of the board of directors is the most significant lever reinforcing corporate governance ownership in family-owned companies. DiscussionThe purpose of this research is to develop Caudillo's theory to appraise the governance hegemony levers in family ownership. Caudillo's theory outlines the structure of political governance in administration based on power-oriented processes, where individuals close to power are selected as leaders and tasked with overseeing executive affairs. Given that the structure of family-owned companies may follow a similar pattern, this research examines various aspects of the structural characteristics of companies with power-oriented ownership, specifically in the context of family ownership. In analyzing the results, it can be stated that family-owned structures often aim to maintain their power within the company. To achieve this, they tend to select board members who have close familial or interactive ties with the president or founder of the company. This ensures their influence over the company's decisions. Consequently, the independence of the board of directors in such companies is often compromised, which can lead to the allocation of bonuses to managers and an increase in information asymmetry. ConclusionThe results of this study indicate that the management of companies is often influenced by the presence of individuals who may not necessarily possess expertise in management or effective decision-making. Their primary role is to ensure that the interests of those in power are safeguarded, even at the expense of other stakeholders. In family-owned companies, the ownership structure characterized by a higher proportion of non-independent members on the board of directors, can exacerbate conflicts of interest due to the lack of independence among board members. This imbalance, where non-independent members outnumber independent ones, creates a fertile ground for conflicts between the interests of the company and its shareholders, ultimately harming the interests of minority shareholders.
