A systematic review on Determinants of financial reporting Readability (Case study: Iran's Securities and Exchange)

Articles in Press

Document Type : Research Paper

Authors

1 PhD student, Accounting Department, Faculty of Economics and Social Sciences, AlZahrah University

2 Associate Professor of Accounting Department of Accounting, Faculty of Social Sciences and Economics Alzahra University

10.22051/jera.2025.47183.3242

Abstract

Purpose: By using positive and negative words in written messages, managers communicate their expectations of future performance, or think of it as a low-cost solution to achieve their personal interests. The purpose of this article is a proper understanding of this behavior of managers. Because it is not possible to investigate the correct performance of qualitative information in forming the expectations of market participants and increasing transparency by reducing information asymmetry, without paying attention to the readability of reports and the tone of qualitative information.

Method: The current research is applied from the point of view of the goal, and the ruling paradigm is the interpretive paradigm. The research sample includes 31 articles published in business, management and accounting journals published in the SID and ISC database for the period of 2017-2022. The PRISMA checklist was used to compile the review protocol, and the critical assessment skills program rubric was used to evaluate the quality of the studies in the sample.

Findings: The findings showed that factors such as corporate governance, management characteristics, earnings management, audit characteristics and Corporate governance Mechanism are important determinants of reporting readability in Iran.

Conclusion: Despite the "Fog Index “limitations, this index can also be used in the Iran's Stock market. It is also significant to present an Iranian model of factors affecting the financial reporting readability, taking into account the important factors identified in this study.

Originality: The present research contributes to the knowledge enhancement in the existing literature by answering the question of "how are the general trends and relationships in the research literature". In this research, the factors that determine readability of reporting are clearly separated from each other because the research literature has shown that each of these factors are different from each other.

Keywords

Main Subjects

Empirical Research in Accounting

Articles in Press, Accepted Manuscript
Available Online from 21 January 2025

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History

  • Receive Date: 14 May 2024
  • Revise Date: 28 December 2024
  • Accept Date: 21 January 2025

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