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:: year 11, Issue 42 (2019) ::
fa 2019, 11(42): 130-150 Back to browse issues page
Business strategy and financial reporting readability
Mehdi Safari gerayyli * 1, Yasser Rezaei Pitenoei2
1- Associated Professor, Department of accounting, Bandargaz Branch, Islamic Azad University, Bandargaz, Iran
2- Assistant Professor of Accounting, University of Guilan, Rasht, Iran.
Abstract:   (2520 Views)
Business strategy exerts a considerable impact on complexities, risk and corporate environmental uncertainties as well as the way of providing financial reporting. On this line of argument, therefore, the present study seeks to scrutinize the effect of business strategy on corporate financial reporting readability. In doing so, Fog and Fletch indices are employed to measure financial reporting readability, and the composite scoring system developed by Ittner et al (1997) is also used to determine the corporate business strategy type. The research hypotheses are built on a sample of 84 firms listed on the Tehran Stock Exchange during the years 2013-2017 and then tested using multivariate regression model based on panel data. The findings reveal that firms with aggressive strategies provide less readable financial reporting in comparison with their defensive counterparts. Additionally, the results of analyzing sensitive testing suggest that use of alternative proxies for measurement of financial reporting readability and business strategy does not affect the main results of the study, thereby confirming the robustness of the results.

 
Keywords: Business Strategy, Aggressive Strategy, Financial Reporting Readability
Full-Text [PDF 1577 kb]   (1871 Downloads)    
Type of Study: Research | Subject: Special
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safari gerayyli M, Rezaei Pitenoei Y. Business strategy and financial reporting readability. fa 2019; 11 (42) :130-150
URL: http://qfaj.mobarakeh.iau.ir/article-1-1632-en.html
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year 11, Issue 42 (2019) Back to browse issues page
فصلنامه حسابداری مالی Quarterly Financial Accounting
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