Designing financial reporting transparency model

Authors

Department of Accounting, Faculty of Social Sciences and Economics, Alzahra University, Tehran, Iran

Abstract

Transparency is the core of modern financial reporting which helps users in understanding the business enterprises. Despite the importance of this concept, the general definition of it is not provided. Several methods have been used for measuring transparency that has been resulted in different justifications. This paper, after review of theoretical principles, literature and Iranian environmental properties, has proposed a more comprehensive model to assess transparency level and disclosure quality. In order to assess the validity of the model, a questionnaire was designed, and for screening and final approval of the indices from academic and professional experts view point, Delfi and Fasi technique was used.  Based on the tests, all the parameters of the model were verified by Experts. Other tests enable us to confirm that the structural fit of model is good. In addition, according to the expert opinion, the gap between current and desired status of the different dimensions of transparency is meaningful and significant.

Keywords

References

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History

  • Receive Date: 21 November 2014
  • Revise Date: 14 September 2015
  • Accept Date: 31 January 2015

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