Financial reporting quality and firms’ information environment: a case of Iranian firms

Pitenoei, Yasser Rezaei; Gerayli, Mehdi Safari; Abdollahi, Ahmad

doi:10.1108/imefm-04-2019-0146

Cited by 4 publications

(18 citation statements)

References 71 publications

(79 reference statements)

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“…Lower information asymmetry and higher information quality capture higher information environment quality. Pitenoei et al (2021) find that higher financial reporting quality improves the information environment. Al-Shaer (2020) finds that higher sustainability report quality can increase information quality.…”

Section: Sustainability Report Quality On Information Riskmentioning

confidence: 87%

“…First, the quality of the information environment depends on the process of information reporting. The process of information reporting focuses on the internal structure of information reporting in the firm (Pitenoei et al, 2021). The internal structure of the firms refers to the governance mechanism that promotes effective monitoring and provides independent assurance in the process of information reporting (Armstrong et al, 2012;Haβ et al, 2014).…”

Section: Information Environmentmentioning

confidence: 99%

“…Firms' reporting quality reflects transparency (Pitenoei et al, 2021) and accountability (Birnberg, 2011), since higher reporting quality provides accurate information to generate accurate investment decision-making (Biddle et al, 2009). Previous studies find that higher reporting quality can reduce asymmetry of information (Suharsono et al, 2020), increase the quality of the information environment (Pitenoei et al, 2021) and reduce information costs (Fakhari and Pitenoei, 2017). In this case, this research argues that the quality of sustainability reporting can determine the quality of the information environment.…”

Section: Information Environmentmentioning

confidence: 99%

“…Firms' information environment refers to the condition where the firm's system can provide relevant information that can be used by information users (von Koch and Willesson, 2020). Pitenoei et al (2021) find that higher reporting quality can improve firms' information environment by reducing information risk. In the context of agency, higher SRQ leads to lower managersinvestors conflict by reducing information asymmetry and improving the information environment (Jensen and Meckling, 1976).…”

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confidence: 99%

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Governance mechanism to improve sustainability report quality: the impact on information risk and stock market participation

Justina,

Lantara

2023

IJQRM

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PurposeThis study aims to examine the effect of sustainability report quality (SRQ) on information risk. This research also aims to examine the effect of SRQ on stock market participation through information risk.Design/methodology/approachThe research sample includes 120 firm-years listed on the Sri Kehati Index period of 2017–2021. The hypothesis test uses firm and industry effect regression analysis. SRQ is measured by the existence of a sustainability committee and external assurance. The information risk is measured by bid-ask spread. Stock market participation is measured by volume of stock trading.FindingsBased on the data analysis, this investigation finds that SRQ reduces information risk. This research also finds that SRQ improves stock market participation by reducing information risk.Originality/valueFirst, this examination gives new evidence of SRQ to promote information environment improvement. Second, this examination contributes to providing the role of SRQ in an emerging market, such as Indonesia. Third, this examination contributes to providing the evaluation standard for sustainability reporting quality in Indonesia, since Indonesia has no specific standard for the sustainability report. Fourth, this examination contributes to filling the previous gap.

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Section: Sustainability Report Quality On Information Riskmentioning

confidence: 87%

Section: Information Environmentmentioning

confidence: 99%

Section: Information Environmentmentioning

confidence: 99%

mentioning

confidence: 99%

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Governance mechanism to improve sustainability report quality: the impact on information risk and stock market participation

Justina,

Lantara

2023

IJQRM

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“…1. Based on the agency theory, which plays an important role in financial and accounting research, especially corporate governance (Pranata and Laela, 2020), conflict of interest between owners and managers that arises from the separation of ownership and management and leads to agency costs and a weak information environment in firms (Watts and Zimmerman, 1986; Rezaei Pitenoei et al , 2021). …”

Section: Notesmentioning

confidence: 99%

Audit committee and CSR disclosure: does the gender diversity of audit committee members matter?

Pitenoei

Gerayli

Khozein

2022

Self Cite

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Purpose The gender theory demonstrates that women have made significant contributions to the increases of firm performance and monitoring the management. Therefore, the purpose of this study is to examine the association between audit committee gender diversity (ACGD) and corporate social responsibility (CSR) disclosure of the firms listed on the Tehran Stock Exchange. Design/methodology/approach The authors conduct regression analysis to test the association between the presence of female members on the AC and CSR disclosure. The final sample in this study consists of 693 firm‐year observations from Iranian listed firms over the period 2012–2018. Moreover, to ensure the robustness of the findings, this study uses a series of sensitivity analysis tests. Findings The regression results show that ACGD has a significant positive influence on the level of CSR disclosure. The finding is robust to alternative measure of ACGD, CSR disclosure and endogeneity concern. Practical implications The findings have numerous practical implications for regulators, policy makers, managers and investors. This study has implications for Iranian regulators and policymakers and sends positive signal about recommending or requiring gender diversity on the board and its subgroups such as AC. Furthermore, the findings have implications for the investors, so that they have to make informed investment decisions given both financial factors and ACGD, and eventually invest in those firms with women membership in their AC’s composition. Social implications Concerning with board of directors and the general assembly of shareholders, as the findings suggest the significant role of ACGD in the enhancement of CSR disclosure, boards and the general assembly are to engage women in AC composition to both increase AC efficiency and improve CSR disclosure level. Originality/value To the best of the authors’ knowledge, this is the first study of its kind that investigates the association between ACGD and CSR disclosure in emerging capital markets, and therefore can contribute to extend the current literature on CSR in developing countries, especially Iran’s emerging capital market.

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The Moderating Effect of the COVID-19 Pandemic on the Relation between Corporate Governance and Firm Performance

Tarighi,

Hosseiny,

Akbari

et al. 2023

JRFM

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The present study aims to investigate the association between corporate governance mechanisms and financial performance among companies listed on the Tehran Stock Exchange (TSE). We also want to know if the COVID-19 global crisis moderates the relationship between them. The study sample consists of 1098 observations and 183 companies listed on the TSE from 2016 to 2021; furthermore, the statistical method used to test the hypotheses is panel data with random effects. In line with our expectations, the results show that the coronavirus pandemic worsened Iranian corporate performance. In support of agency theory, we figure out that board independence, board meeting frequency, and board financial expertise are correlated positively with firm value. In favor of resource dependency theory, this study finds robust evidence that audit committee size and independence have a positive effect on corporate performance. Most importantly, the positive linkage between board independence, board financial expertise, size, and independence of audit committee with firm performance was reversed during the COVID-19 pandemic, although the positive role of board meeting frequency in corporate profitability remained stable even during the COVID-19 outbreak. Furthermore, the outcomes indicate that CEO duality affects firms negatively, and this devastating effect became even stronger with the COVID-19 pandemic. Finally, we find that firms involved in mergers and acquisitions (M&A) managed to increase shareholders’ wealth using competitive advantage even during the pandemic.

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Financial reporting quality and firms’ information environment: a case of Iranian firms

Cited by 4 publications

References 71 publications

Governance mechanism to improve sustainability report quality: the impact on information risk and stock market participation

Governance mechanism to improve sustainability report quality: the impact on information risk and stock market participation

Audit committee and CSR disclosure: does the gender diversity of audit committee members matter?

The Moderating Effect of the COVID-19 Pandemic on the Relation between Corporate Governance and Firm Performance

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