Accounting report
Javad Shekarkhah
Abstract
1. IntroductionIn recent decades, corporate performance has been defined as a measure of a firm's effectiveness in utilizing limited resources to create value. In the context of value creation, companies strive to achieve sufficient returns while meeting the expectations of interested stakeholders (Brundtland, ...
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1. IntroductionIn recent decades, corporate performance has been defined as a measure of a firm's effectiveness in utilizing limited resources to create value. In the context of value creation, companies strive to achieve sufficient returns while meeting the expectations of interested stakeholders (Brundtland, 1987). In the current era, investors increasingly consider not only financial reports but also non-financial disclosures to better inform their investment decisions. Sustainability reporting, which enhances transparency, enables investors to make more informed and positive investment choices (Leins, 2020). Environmental, social, and governance (ESG) issues and sustainability are closely intertwined concepts that have garnered significant attention in recent years due to the need to address global challenges and promote responsible business practices. Sustainability reporting is defined as a set of activities undertaken by organizations to provide evidence of the integration of social and environmental considerations into corporate operations and interactions with stakeholders. The concept of sustainability reporting emerged in the early 1980s with the advent of environmental reporting (Aifuwa, 2020).The academic literature suggests that engaging in corporate social responsibility (CSR) activities not only enhances relationships with stakeholders and the broader community but also differentiates companies in competitive markets, fostering trust and maximizing value (Ameer & Othman, 2012; Van Linh et al., 2022). In recent years, sustainability reporting has garnered significant attention as companies, investors, and consumers increasingly prioritize sustainability. Sustainability is defined as meeting present needs without compromising the ability of future generations to meet their own needs. As companies strive to maintain their market position amid evolving landscapes, it has become evident that a sole focus on financial performance is no longer sufficient. Sustainability performance and disclosure have become increasingly critical for achieving competitive success (Hahn & Kühnen, 2013).A substantial body of research has explored the relationship between sustainability and corporate performance, yielding varied results ranging from positive to insignificant or negative outcomes (Rodgers et al., 2019). The literature on the relationship between sustainability reporting and corporate financial performance has produced conflicting findings, with prior studies indicating that results are so diverse that definitive conclusions remain elusive (Nguyen et al., 2025). Given these considerations, the challenges associated with sustainability and corporate performance have attracted growing attention from researchers and practitioners, leading to a significant increase in related publications. Several studies have sought to synthesize this extensive literature, employing bibliometric analysis and systematic reviews to gain a comprehensive understanding of the field, identify knowledge gaps, explore new ideas, and position their contributions. While bibliometric analyses and systematic reviews on sustainability and its reporting have proliferated, few studies have specifically focused on the relationship between sustainability and corporate performance.A review of the literature reveals that systematic reviews of the relationship between sustainability reporting and performance have received limited attention. Recent studies have primarily focused on bibliometric analyses to identify trends and key patterns in this field, without providing a comprehensive synthesis or analysis of the key findings of relevant research. Given the increasing importance of sustainability reporting as one of the latest transformative trends in corporate reporting, this study undertakes a systematic review of research examining the impact of sustainability reporting on financial performance.2. MethodologyThis research is classified as applied and exploratory in terms of its objectives and aligns with the interpretive paradigm and qualitative research methodology. Consistent with the research objectives, a systematic review method was employed for data collection, and an inductive content analysis approach was used for analyzing the selected studies. The latest version of the PRISMA checklist (2020) was utilized to develop the review protocol. The search for articles was conducted in two reputable academic databases, Scopus and Web of Science. The research period was set from 2013 to the end of June 2025. To enhance the sensitivity and comprehensiveness of the search, equivalent and related keywords for the two main terms, "sustainability reporting" and "corporate financial performance," were used, along with the Boolean operator "OR." The search was limited to English-language journal articles that had undergone a rigorous peer-review process. The retrieved articles were imported into Zotero software based on the search protocol and subjected to multiple screening stages. Initially, duplicate articles from both databases were removed. Subsequently, articles relevant to the research topic and objectives were selected based on their titles. In the next stage, articles were screened based on their abstracts. Finally, after a full-text review, 95 studies were retained for analysis.3. ResultsThe systematic review of the studies indicates that a significant majority of the examined research supports a positive relationship between sustainability reporting and both operational performance metrics (return on assets and return on equity) and market-based performance metrics (Tobin's Q and market-to-book value ratio). Specifically, 70% of the studies demonstrate a positive impact of sustainability reporting on return on assets, 64% indicate a positive effect on return on equity, and 72% show a positive influence on market-based performance indicators. These positive findings align with supporting theories, including signaling theory, legitimacy theory, and stakeholder theory. According to signaling theory, market signals that reduce information asymmetry assist investors in making informed decisions. Sustainability reporting enables companies to send positive signals to the market, reducing asymmetry and potentially enhancing value creation. Furthermore, legitimacy theory posits that companies operate with the implicit approval of society but must continually demonstrate their legitimacy to avoid losing public support. Companies may disclose additional information to maintain legitimacy, which can lead to higher firm value. Thus, firms engaging in sustainability reporting can sustain their legitimacy and enhance value creation. Similarly, stakeholder theory suggests that a company’s existence depends on its ability to meet stakeholders’ needs. This theory emphasizes that companies must engage in corporate social responsibility activities, beyond maximizing shareholder profits, to address the needs of non-financial stakeholders who can provide significant support. These findings support the legitimacy, stakeholder, and signaling theories and underscore the importance of policymakers encouraging or mandating sustainability reporting disclosures to enhance market transparency and efficiency.4. ConclusionBased on the confirmation of a positive impact of sustainability reporting on financial performance, the reviewed studies offer recommendations for policymakers and companies. Some studies suggest that sustainability reporting can serve as a risk mitigation strategy in uncertain environments. These studies advocate that sustainability reporting is not only a regulatory requirement but also a strategic asset for improving financial performance. Companies need to develop long-term strategies for implementing sustainability reporting. Governments should enhance the current legal framework to establish a robust foundation for implementing sustainability reporting. These studies strongly support the notion that corporate sustainability disclosure is a strategic tool for increasing firm value and competitive advantage. Another key implication of the reviewed research is the importance of regulations in improving transparency and corporate performance. According to some findings, adherence to the Global Reporting Initiative (GRI) standards in sustainability disclosures contributes to increased firm value, highlighting the importance of standardization and transparency in sustainability reporting to build investor confidence. The integration of reporting frameworks as a means to improve quality and create value has also been proposed by some studies. Additionally, certain studies emphasize the influence of environmental, social, and governance (ESG) dimensions, advocating that ESG considerations should be integrated into financial planning, regulations, and investment decisions to achieve long-term benefits.
Capital Structure
Behrooz Badpa; Darioush Akhtarshenas; Amin Ghanbari
Abstract
IntroductionIn today's complex and modern economic environment, companies can gain a competitive advantage by optimally utilizing not only tangible assets but also the knowledge, experience, and capabilities of their employees. Firms with higher intellectual capital can adopt favorable strategies to ...
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IntroductionIn today's complex and modern economic environment, companies can gain a competitive advantage by optimally utilizing not only tangible assets but also the knowledge, experience, and capabilities of their employees. Firms with higher intellectual capital can adopt favorable strategies to achieve success by leveraging all available resources, thereby enhancing performance and attaining sustainable operational success. The value-added intellectual coefficient model, which measures the efficiency of intellectual capital, comprises three components: human capital efficiency, structural capital efficiency, and capital employed efficiency. By investing in human capital development, a company can improve the efficiency of its value chain through increased workforce productivity and effectiveness. Similarly, investing in structural capital can enhance value chain efficiency by streamlining processes, reducing waste, and improving communication and collaboration. Moreover, investment in intellectual capital development typically leads to increased returns and value creation, thereby improving the quality of the value chain. Based on this, the efficiency of the company's value chain was assessed using the stochastic frontier analysis. Subsequently, the impact of intellectual capital on value chain efficiency, cash flows, and bankruptcy risk was examined.Materials & MethodsAlthough the research population included all companies listed on the Tehran Stock Exchange, due to limitations in achieving reliable results, a sample of 142 companies was selected. Data from these companies was analyzed over 11 years (2013–2023). The research hypotheses were tested using Structural Equation Modeling (SEM) by Smart-PLS software. SEM enables researchers to explore complex relationships among multiple variables simultaneously (Hair et al., 2017). According to the research literature, companies with higher intellectual capital are expected to perform better across the value chain by leveraging both tangible and intangible assets, resulting in improved cash flows and reduced bankruptcy risk. Additionally, effective value creation throughout the value chain is expected to lower the risk of bankruptcy and enhance cash flows. Based on this framework, the research proposed the following hypotheses:Hypothesis 1: The company's intellectual capital has a significant positive effect on the efficiency of its value chain.Hypothesis 2: The company's intellectual capital has a significant negative effect on its bankruptcy risk.Hypothesis 3: The company's intellectual capital has a significant positive effect on its cash flows.Hypothesis 4: The company's value chain efficiency has a significant negative effect on its bankruptcy risk.Hypothesis 5: The company's value chain efficiency has a significant positive effect on its cash flows.FindingsThe research findings, at a 95% confidence level, revealed that intellectual capital positively influences value chain efficiency and cash flows, while negatively influencing bankruptcy risk. Furthermore, value chain efficiency enhances cash flows and reduces the likelihood of bankruptcy. The highest path coefficient is related to the impact of intellectual capital on the company's cash flows. The impact of intellectual capital on cash flows is greater than the impact of intellectual capital on value chain efficiency, and value chain efficiency on cash flows; in explaining the possible causes, it can be said that intellectual capital can affect the value chain by improving the efficiency and effectiveness of activities; that is, it can lead to more efficient production of goods or services, reduce costs, and improve the overall performance of the value chain; but the relationship between intellectual capital and value chain efficiency may be affected by the industry and context of the company's activity. In addition, intellectual capital allows companies to create greater value for customers, resulting in increased sales and revenue, and consequently, stronger cash flows. By improving transparency and reducing information asymmetry, intellectual capital disclosure enhances investor confidence and lowers the cost of equity, which ultimately boosts net positive cash flows. In explaining the magnitude of the lower path coefficient of intellectual capital and bankruptcy risk compared to intellectual capital and cash flows (regardless of the direction of the relationship), it can be argued that optimal intellectual capital enhances value chain efficiency and shareholder value, increasing sales and operating income. Nevertheless, innovation derived from intellectual capital does not always guarantee a competitive advantage, as it may be influenced by factors such as industry type, economic sanctions, macroeconomic conditions, and market competition.Discussion & ConclusionThe results further confirmed that intellectual capital significantly improves value chain efficiency. In other words, companies that effectively utilize all dimensions of intellectual capital—structural, human, physical, and financial—exhibit better overall performance across the value chain. These companies also experience higher and more stable cash flows. These findings align with the results of previous studies by Ghayouri-Moghaddam et al. (2012), D'Amato (2021), and Akpinar (2017). Moreover, companies with higher intellectual capital were found to have a lower bankruptcy risk, supporting the conclusions of Festa et al. (2021), Rasheed (2023), and Mollabashi and Sendani (2014), while differing from those of Bakshani (2014). In addition to the above results, the research findings showed that the efficiency of the company's value chain has a significant positive effect on the company's cash flows and a negative effect on its bankruptcy risk, which is consistent with the findings of Sun and Cui (2012) and Akpinar (2017). The results of the study expand the literature on the role of corporate capital dimensions, especially non-physical capital, in the synergy of the company's chain components and its competitive advantage. On the other hand, the results of the study can be useful for the decision-making and planning of company managers, analysts, and consultants in the stock market, investors, shareholders, and also government officials. In this regard, an index called the value chain efficiency rating, which covers the company's comprehensive performance during various operational and support stages, should be considered by analysts and investors in fundamental stock analysis so that the intrinsic value of the stock can be calculated correctly and accurately. Given the positive and significant impact of intellectual capital on the company's cash flows, it is recommended that managers and consultants use the company's intangible assets and intellectual capital as items affecting investment decisions in capital budgeting. It is also recommended that legislators specify the permitted and recommended methods for evaluating companies' intellectual capital so that a more accurate basis for its evaluation is available to everyone. In addition, because some listed companies have foreign exchange income, given the severe fluctuation of the exchange rate in Iran and the high inflation rate, analysts and capital market activists must separate the company's actual financial performance from inflationary financial figures so that the company's intellectual capital can be evaluated more accurately.Keywords: Intellectual capital, Value chain efficiency, Cash flows, Bankruptcy Risk, Structural Equation Modeling.
Accounting and various aspects of finance
Mohsen Khotanlou; Mahdi Kazemioloum; Yasaman Moradi Behjat
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 ...
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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 the moderating role of audit committee characteristics. In this research, data from 78 companies listed on the Tehran Stock Exchange during the period 2013 to 2024 (858 firm-years) were collected, and the research hypotheses were tested using pooled data and multiple regression. The research findings show that gender diversity on the board of directors has a positive and significant impact on ESG disclosure; in other words, with an increase in the presence of women on the board, the ESG disclosure index also increases. The research findings also indicated that the independence and financial expertise of the audit committee moderates the relationship between board gender diversity and ESG disclosure; however, the size of the audit committee members do not have a moderating effect on this relationship. This study provides valuable insights for managers and investors to assess the role of gender diversity on the board of directors and audit committees in ESG disclosure, and to assist them in making better decisions. 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 better protect the rights of stakeholders.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 the moderating role of audit committee characteristics. In this research, data from 78 companies listed on the Tehran Stock Exchange during the period 2013 to 2024 (858 firm-years) were collected, and the research hypotheses were tested using pooled data and multiple regression. The research findings show that gender diversity on the board of directors has a positive and significant impact on ESG disclosure; in other words, with an increase in the presence of women on the board, the ESG disclosure index also increases. The research findings also indicated that the independence and financial expertise of the audit committee moderates the relationship between board gender diversity and ESG disclosure; however, the size of the audit committee members do not have a moderating effect on this relationship. This study provides valuable insights for managers and investors to assess the role of gender diversity on the board of directors and audit committees in ESG disclosure, and to assist them in making better decisions. 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 better protect the rights of stakeholders.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 the moderating role of audit committee characteristics. In this research, data from 78 companies listed on the Tehran Stock Exchange during the period 2013 to 2024 (858 firm-years) were collected, and the research hypotheses were tested using pooled data and multiple regression. The research findings show that gender diversity on the board of directors has a positive and significant impact on ESG disclosure; in other words, with an increase in the presence of women on the board, the ESG disclosure index also increases. The research findings also indicated that the independence and financial expertise of the audit committee moderates the relationship between board gender diversity and ESG disclosure; however, the size of the audit committee members do not have a moderating effect on this relationship. This study provides valuable insights for managers and investors to assess the role of gender diversity on the board of directors and audit committees in ESG disclosure, and to assist them in making better decisions. 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 better protect the rights of stakeholders.
Financial audit
zahra joudaki chegeni; mohammad hossein safarzadeh; Hamideh AsnaAshari; Fakhroddin MohammadRezaei
Abstract
AbstractConsidering the scientific and practical significance of research in this field, conducting a bibliometric analysis aimed at mapping the global status, trends, factors, and bibliographic relationships within this domain is a necessity that has not been comprehensively addressed so far. In this ...
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AbstractConsidering the scientific and practical significance of research in this field, conducting a bibliometric analysis aimed at mapping the global status, trends, factors, and bibliographic relationships within this domain is a necessity that has not been comprehensively addressed so far. In this study, articles published in the research domain were collected from the Scopus database spanning the years 1986 to 2024. Subsequently, for a more focused analysis, 38 articles closely aligned with this area were selected. The VOSviewer software was employed for the bibliometric analysis. Based on the bibliometric analysis, the keyword "merger" emerged as a core term, surrounded by other closely related major nodes such as "audit firm merger," "audit quality," "audit fees," "audit efficiency," and "competition," all directly linked to the main research theme. The United States, the Auditing: A Journal of Practice & Theory, and the domains of business, management, and accounting were identified as the most influential in this research area. Additionally, among researchers, Moroney exhibited the highest level of collaboration with Simnett and Thavapalan. This study elucidates the intellectual and conceptual structure of audit firm mergers, highlighting emerging topics such as auditor-client alignment, audit regulation, market share, auditor switching, and audit efficiency. The findings of this research provide a relatively comprehensive overview of the literature on audit firm mergers throughout its evolution, offering future research directions for scholars.Keywords: Audit firm mergers, bibliometric analysis, global trends, intellectual structure, keyword co-occurrence.Introduction: Regulators and critics of mergers often express concern that a merged audit firm, due to its better market position, may harm its clients. Following a merger, the number of audit service providers decreases, making it more difficult for audit clients to switch to an alternative and appropriate audit firm with more reasonable audit costs. The merger of audit firms has become one of the key concerns in the auditing profession and has attracted the attention of recent research. Studies related to the merger of audit firms can be categorized into several phases. These phases include the pre-merger stage (antecedents), the merger stage (agreements), and the post-merger stage (consequences). A review of prior research suggests that the post-merger phase of audit firms has predominantly been the focus of researchers. Despite numerous studies on the consequences of audit firm mergers, a research gap is observed in the area of antecedents and agreements in these mergers. Therefore, given the scientific and practical importance of research in this field, a bibliometric analysis aimed at mapping the global discourse on audit firm mergers and their bibliographic relationships is essential, a topic that has not been thoroughly explored. This study, by providing a comprehensive overview of the status of audit firm merger research, identifying existing gaps in the literature, and revealing future research trends, serves as a valuable resource for researchers. Moreover, the present study highlights the trends and progression of research related to the literature on audit firm mergers.Method: The present study employs a bibliometric methodology within a literature review approach. This quantitative method of reviewing the literature advances the intellectual structures and evolution of a specific academic field. It aids in visualizing data and performing thematic analyses to better understand the content of research on the discourse surrounding audit firm mergers. Additionally, it provides positive and valuable insights for researchers in this domain. In this paper, the process of identifying, screening, qualifying, and analyzing data was systematically conducted. The researchers initiated the process by selecting the Scopus database to collect information from relevant articles. Scopus was chosen as the bibliometric data source for its applicability across various academic fields and, in this study, for examining the literature on the topic. Initially, a search was conducted to identify articles related to the specified domain. To execute the search, the terms “audit firm mergers,” “audit firm integrations,” “audit firm acquisitions,” “audit firm consolidations,” and “professional services firm mergers” were used within the titles, abstracts, and keywords of articles in the Scopus database. Next, inclusion criteria were established, and articles were filtered based on the 1986–2024 timeframe. More precisely, based on the literature review, only articles published during this period were selected. Subsequently, English was designated as the language criterion, and the type of publication was restricted to scholarly research articles. As a result, only English-language research articles published in the fields of business, management, and accounting; economics, econometrics, and finance; and social sciences were considered for this study. The screening stage ultimately led to the identification of the targeted articles. To ensure their relevance, the titles and abstracts of the articles were reviewed, and irrelevant articles were excluded. Ultimately, 38 articles were included in the analysis. Based on the research process, the final stage involved data analysis, which was performed using the Vosviewer software. Co-occurrence analysis, defined as the repetition of similar keywords across different articles, was conducted. Co-occurrence analysis and the identification of frequently used keywords highlight key research topics. Furthermore, co-citation analysis of keywords and co-authorship analysis were performed using the softw. Specifically, if two keywords representing a particular research topic appeared simultaneously in a document, those keywords were considered to have a unique semantic relationship.Findings: The progression of literature on audit firm mergers indicates that this field was relatively underexplored until 2002. In other words, this topic did not receive significant attention from researchers before that year. Over time, as the importance of the subject matter studied in this research grew, the number of published articles showed an upward trend, reflecting the rising significance of the topic. From 2002 onward, the field has experienced fluctuating growth, illustrating that substantial research will continue to be conducted in this area through 2024 due to its critical importance. Among the countries contributing to the body of research, the United States leads with 20 publications, followed by the United Kingdom with 8, and Hong Kong with 6. Regarding research areas, the majority of articles pertain to business, management, and accounting (57.1%), followed by economics, econometrics, and finance (38.1%), and social sciences (4.8%). Most articles were published in reputable journals such as Auditing: A Journal of Practice and Theory (4 articles), Contemporary Accounting Research, and the Journal of Accounting and Public Policy (3 articles each). The keyword “mergers” emerged as the central theme, with closely associated large nodes such as audit firm mergers, audit quality, audit fees, audit efficiency, auditor-client alignment, the audit market, knowledge transfer, industry specialization, audit reporting delays, and audit market dynamics, all aligning with the primary focus of this study. In total, 89 authors have contributed to research on audit firm mergers, forming a collaborative network of researchers. For instance, “Moroney,” in collaboration with “Simnett” and “Thavapalan,” has co-authored several studies and contributed the highest number of publications in this domain.Conclusion: The present study systematically reviews articles on audit firm mergers published between 1986 and 2024, mapping the knowledge network through co-occurrence analysis of keywords and co-authorship analysis. The keyword "mergers" was identified as the central theme, with closely related large nodes including audit firm mergers, audit quality, audit fees, audit efficiency, auditor-client alignment, the audit market, knowledge transfer, industry specialization, audit reporting delays, and audit market dynamics, all aligned with the primary focus of the study.
Profitability
omid tarast; farzad ghayour; parviz piri
Abstract
1. IntroductionInvestors, who are the economic pulse of the financial industry, always want to be fully and transparently aware of the currents and events occurring in business units. Benford distribution (1938) can be evaluated as one of the options for evaluating financial reports.Benford distribution ...
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1. IntroductionInvestors, who are the economic pulse of the financial industry, always want to be fully and transparently aware of the currents and events occurring in business units. Benford distribution (1938) can be evaluated as one of the options for evaluating financial reports.Benford distribution is an analysis process that compares actual results against expected results to search for abnormal transactions. This distribution, also known as the first digit law, is a type of empirical observation that states; the first digit of the digits in many numerical data sets that occur are distributed in a special and non-uniform way. In other words, Benford distribution refers to the fact that in each of the digits (first to fourth digits), the probability of the digits one to nine is not equal and the first digits will be used more than the last digits. Therefore, the probability of the first digit occurring in the first digit is higher than the other digits.The rounding of financial figures often occurs when the distribution of figures differs slightly from the rounding. Any manipulation of figures if done artificially can be considered a self-serving act, although this act may be in the interests of the business unit or a number of specific individuals. In view of the above, the purpose of this research is to investigate and determine the extent to which profit figures of Iranian stock exchange business units are trimmed in order to round them in line with the personal interests of managers. In line with the objectives of the research, the question has been raised as to whether high and low audit quality has an effect on reducing or increasing the extent to which profit figures of business units are trimmed? And whether in each of the life cycles under study, if audit quality is present or absent, trimming of profit figures takes place or not?2. Literature ReviewThe Benford distribution was first introduced by Simon Newcomb (1881), an American mathematician who was able to discover the secret of logarithmic books. At that time, academics did not pay attention to Newcomb's research, and finally, Frank Benford (1938), a physicist at General Electric, once again addressed this phenomenon to bring this issue to a conclusion. Benford examined a set of natural data (20/229 randomly selected data) such as; baseball statistics, death rates, stock market prices, atomic weights in chemical compounds, Fibonacci numbers, river lengths and lake areas, urban population and census data, books and magazines, and the like. Finally, he confirmed the distribution observed by Simon Newcomb that in the distribution of numbers, there is a tendency towards smaller numbers and the repetition of the numbers one and two is more frequent than the numbers eight and nine. After the interest of academics, this distribution was officially named and known as the Benford distribution. However, research in this area did not progress as expected until a professor of mathematics named Roger Pinkham (1961) finally achieved mathematical proof in this field with his studies. After all these theorems, the American mathematician named Hill (1995) proved for the first time and in another way theoretically, using the form of the influential numerical center limit theorem in statistics, that the first digit follows this principle (Benford distribution). Based on his studies, Hill found that if the distribution of digits occurs randomly and random samples are extracted from that distribution, then it will be closer to the logarithmic distribution (Benford's law), and it will also help in the interpretation and prediction of digital aspects.Motivations related to profit embellishment in Iranian business units may be different from those in Western countries (Pourheidari and Hemmati, 2004). In studies and investigations conducted by Hee and Gan (2014) regarding the financial reports of Japanese business units, they found by applying Benford's law to profit and income accounts that profit embellishment and embellishment will differ from industry to industry, and that profit embellishment is more noticeable than income. In a study by Lennox et al. (2018), they addressed the topic of profit embellishment, auditor adjustments, and financing of business units and examined the amount and size of auditors' profit adjustments at the time of financing. They found that in the pre-financing stage, the size of auditor adjustments that minimize the profit of the business unit will be very large.3. MethodologyThe present study can be considered as an applied study in terms of its purpose. The information extracted using the purposive sampling method. This study seeks to design a model based on empirical observations, and on the other hand, the data used in the study are quantitative. The present study seeks a general result, so this study is a deductive and inductive study in terms of the type of reasoning and conclusion. The present study is related to all business units accepted in the Tehran Stock Exchange in the time period of 2012 to 2023, in which regard it can be said that the final sample selection was made using the systematic elimination method.4. ResultsThe first main hypothesis states that the life cycle (growth, maturity and decline) has a significant effect on the utilitarian neatness of the profit figures of business units. To achieve this, considering that the hypothesis test for the first hypothesis must be carried out in three stages (growth, maturity and decline), the test was carried out for each period. The first sub-hypothesis states that: in the growth stage, there is no neatness of profit figures and the distribution of companies' profit figures follows the Benford distribution. The results of the first sub-hypothesis indicate that the significance level in the second digit of profit figures is less than (0.05). Therefore, the test hypothesis that there is no significant difference between the actual (observed) frequency and the expected frequency is rejected. The significance level for the first, third and fourth digits of profit figures is greater than (0.05), which means that there is no significant difference between the actual frequency and the expected frequency. Also, the second digit statistic indicates a higher number than the first, third, and fourth digits. Therefore, the first sub-hypothesis is accepted. 5. Discussion The results obtained based on the hypothesis test indicate that these results are different from the results of studies conducted in other parts of the world.Although the results obtained in the current study indicate a lack of order in the profit figures of units listed on the Tehran Stock Exchange from 2012 to 2014. However, it is not possible to speak with complete certainty about the lack of order in these companies, because this phenomenon can exist in different industries in different ways and to different degrees.6. ConclusionThe existence of a phenomenon called rounding in the profit figures of business units during their life cycles is not confirmed based on the Chi-square test. The results obtained indicate the absence of tidying by management in the profit figures of the circle under study. The results of the research showed that the audit quality (high and low) has no effect on the occurrence or absence of tidying and there is no tidying in the profit figures at different stages of the life cycle.
Accounting and various aspects of finance
Nasibeh Shafakheibari; alireza hirad; Mohammadreza Abdoli; Reza Sotudeh
Abstract
In today's business environment, which is accompanied by limitations in achieving higher margins due to lack of financial resources, the occurrence of phenomena such as the Ponzi phenomenon is significant as an abnormal condition in the financial efficiency of companies and their related markets. An ...
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In today's business environment, which is accompanied by limitations in achieving higher margins due to lack of financial resources, the occurrence of phenomena such as the Ponzi phenomenon is significant as an abnormal condition in the financial efficiency of companies and their related markets. An issue that could, by luring investors, represent a trend of financial resources in circulation for scammers or so-called Ponzi scheme operators, which could be recognized as a factor disrupting the balance in financial markets. Therefore, since the extension of this emerging phenomenon to accounting practices can be considered as a function of the structural opportunism of companies, this study, through paradigmatic phenomenology, seeks to present a model for understanding the influential nature of Ponzi schemes in the formation of opportunistic accounting practices. In this study, which is exploratory in terms of purpose and developmental in terms of outcome, in the first step, an attempt was made to identify the propositional themes of the Ponzi phenomenon in the formation of opportunistic accounting practices through interviews with 20 actors with lived experience, using open-ended questions and codes derived from the Ponzi phenomenon. Then, by creating a researcher-made checklist rated on the "+8"; "0" and "-8" scales, the study's third stage of data collection methods sought to separate the propositions into more general categories of concepts, according to the focus group scores, in order to provide a paradigmatic model by categorizing propositional themes. The results of the study, after identifying "371" open codes from 20 interviews conducted, indicate the identification of "50" propositional themes in the form of a researcher-made scoring checklist, which, by assigning focal points to each of the actors separated in the specified evaluation panels, ultimately led to the presentation of a paradigmatic model with the identification of 10 categories in 5 dimensions of causal conditions, context, interventionist, strategies, and consequences. The results obtained from the final paradigmatic model in the ontology of the Ponzi phenomenon in the emergence of opportunistic accounting practices actually show a background of conceptual and abstract understanding of this phenomenon in the context of commercial companies. Because the lack of previous research on the theoretical and practical understanding of the existential philosophy of the Ponzi phenomenon has led to the lack of attention to the connection of this phenomenon with accounting procedures as its implementation tool at the level of commercial companies. For this reason, the various angles of the occurrence of such a phenomenon in accounting procedures are among the main objectives of this study. In today's business environment, which is accompanied by limitations in achieving higher margins due to lack of financial resources, the occurrence of phenomena such as the Ponzi phenomenon is significant as an abnormal condition in the financial efficiency of companies and their related markets. An issue that could, by luring investors, represent a trend of financial resources in circulation for scammers or so-called Ponzi scheme operators, which could be recognized as a factor disrupting the balance in financial markets. Therefore, since the extension of this emerging phenomenon to accounting practices can be considered as a function of the structural opportunism of companies, this study, through paradigmatic phenomenology, seeks to present a model for understanding the influential nature of Ponzi schemes in the formation of opportunistic accounting practices. In this study, which is exploratory in terms of purpose and developmental in terms of outcome, in the first step, an attempt was made to identify the propositional themes of the Ponzi phenomenon in the formation of opportunistic accounting practices through interviews with 20 actors with lived experience, using open-ended questions and codes derived from the Ponzi phenomenon. Then, by creating a researcher-made checklist rated on the "+8"; "0" and "-8" scales, the study's third stage of data collection methods sought to separate the propositions into more general categories of concepts, according to the focus group scores, in order to provide a paradigmatic model by categorizing propositional themes. The results of the study, after identifying "371" open codes from 20 interviews conducted, indicate the identification of "50" propositional themes in the form of a researcher-made scoring checklist, which, by assigning focal points to each of the actors separated in the specified evaluation panels, ultimately led to the presentation of a paradigmatic model with the identification of 10 categories in 5 dimensions of causal conditions, context, interventionist, strategies, and consequences. The results obtained from the final paradigmatic model in the ontology of the Ponzi phenomenon in the emergence of opportunistic accounting practices actually show a background of conceptual and abstract understanding of this phenomenon in the context of commercial companies. Because the lack of previous research on the theoretical and practical understanding of the existential philosophy of the Ponzi phenomenon has led to the lack of attention to the connection of this phenomenon with accounting procedures as its implementation tool at the level of commercial companies. For this reason, the various angles of the occurrence of such a phenomenon in accounting procedures are among the main objectives of this study.
Profitability
mandana taheri; Asma Sajedifar
Abstract
This study investigates the effect of pressure to disclose earnings per share (EPS) on the level of environmental information disclosure among companies listed on the Tehran Stock Exchange, with an emphasis on the moderating role of corporate governance. Using data from 110 firms over the period 2012 ...
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This study investigates the effect of pressure to disclose earnings per share (EPS) on the level of environmental information disclosure among companies listed on the Tehran Stock Exchange, with an emphasis on the moderating role of corporate governance. Using data from 110 firms over the period 2012 to 2023 and employing a panel data approach, the results indicate that pressure to disclose EPS has a significant negative impact on environmental disclosure levels. Meanwhile, corporate governance mechanisms, through enhanced transparency and oversight, can help mitigate this adverse effect. However, the findings reveal that corporate governance has not been fully effective in moderating the negative influence of EPS pressure on environmental disclosures. These results provide valuable insights for policymakers and corporate managers aiming to strengthen governance frameworks and improve the quality of environmental reporting.However, the findings reveal that corporate governance has not been fully effective in moderating the negative influence of EPS pressure on environmental disclosures. These results provide valuable insights for policymakers and corporate managers aiming to strengthen governance frameworks and improve the quality of environmental reporting.This study investigates the effect of pressure to disclose earnings per share (EPS) on the level of environmental information disclosure among companies listed on the Tehran Stock Exchange, with an emphasis on the moderating role of corporate governance. Using data from 110 firms over the period 2012 to 2023 and employing a panel data approach, the results indicate that pressure to disclose EPS has a significant negative impact on environmental disclosure levels. Meanwhile, corporate governance mechanisms, through enhanced transparency and oversight, can help mitigate this adverse effect. However, the findings reveal that corporate governance has not been fully effective in moderating the negative influence of EPS pressure on environmental disclosures. These results provide valuable insights for policymakers and corporate managers aiming to strengthen governance frameworks and improve the quality of environmental reporting.However, the findings reveal that corporate governance has not been fully effective in moderating the negative influence of EPS pressure on environmental disclosures. These results provide valuable insights for policymakers and corporate managers aiming to strengthen governance frameworks and improve the quality of environmental reporting.This study investigates the effect of pressure to disclose earnings per share (EPS) on the level of environmental information disclosure among companies listed on the Tehran Stock Exchange, with an emphasis on the moderating role of corporate governance. Using data from 110 firms over the period 2012 to 2023 and employing a panel data approach, the results indicate that pressure to disclose EPS has a significant negative impact on environmental disclosure levels. Meanwhile, corporate governance mechanisms, through enhanced transparency and oversight, can help mitigate this adverse effect. However, the findings reveal that corporate governance has not been fully effective in moderating the negative influence of EPS pressure on environmental disclosures. These results provide valuable insights for policymakers and corporate managers aiming to strengthen governance frameworks and improve the quality of environmental reporting.However, the findings reveal that corporate governance has not been fully effective in moderating the negative influence of EPS pressure on environmental disclosures. These results provide valuable insights for policymakers and corporate managers aiming to strengthen governance frameworks and improve the quality of environmental reporting.This study investigates the effect of pressure to disclose earnings per share (EPS) on the level of environmental information disclosure among companies listed on the Tehran Stock Exchange, with an emphasis on the moderating role of corporate governance. Using data from 110 firms over the period 2012 to 2023 and employing a panel data approach, the results indicate that pressure to disclose EPS has a significant negative impact on environmental disclosure levels. Meanwhile, corporate governance mechanisms, through enhanced transparency and oversight, can help mitigate this adverse effect. However, the findings reveal that corporate governance has not been fully effective in moderating the negative influence of EPS pressure on environmental disclosures. These results provide valuable insights for policymakers and corporate managers aiming to strengthen governance frameworks and improve the quality of environmental reporting.However, the findings reveal that corporate governance has not been fully effective in moderating the negative influence of EPS pressure on environmental disclosures. These results provide valuable insights for policymakers and corporate managers aiming to strengthen governance frameworks and improve the quality of environmental reporting.
