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:: year 14, Issue 53 (2022) ::
fa 2022, 14(53): 100-116 Back to browse issues page
The Impact of the Product Market Competition on the Readability of Financial Reporting
Mahdi Kazemi Oloum1 , Mostafa Abdi * 2, Farideh Seyfi2 , Vahid Shahbazi3
1- Inviting Lecture, Faculty of Economic and Social Sciences, Bu-Ali Sina University, Hamadan, Iran.
2- Department 0f Accounting,Rouzbeh Institute of Higher Education, Zanjan, Iran.
3- Department of Accounting, Imam Khomeini International University, Qazvin, Iran.
Abstract:   (2963 Views)
Based on the effectiveness of information disclosure, product market competition increases management efforts and improves oversight and leads managers to better performance and adequate disclosure in the interests of shareholders, which leads to increased Annual Report Readability. Accordingly, the purpose of this study is to investigate the effect of product market competition on Annual Report Readability.The data collected from the firms listed in Tehran Stock Exchange during the period 2015 to 2021 (1050 firms - year) were collected and the research hypotheses were tested using panel data and multiple regression.The results show that competition in the product market has a positive and significant effect on the readability of financial reporting of companies listed on the Tehran Stock Exchange. These results are in line with the view that companies in competitive industries do not accumulate information and have a good level of disclosure and avoid ambiguous management. The findings show that product market competition plays an important role in shaping the company's information environment and improves text disclosure and contributes to the effectiveness of stakeholder decisions. Companies need to provide comprehensible information to markets that will reduce the cognitive gap between information provider and users
Article number: 6
Keywords: Information Disclosure, Product Market Competition, Readability of Financial Reporting, Management Obfuscation.
Full-Text [PDF 602 kb]   (137 Downloads)    
Type of Study: Research | Subject: Special
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Kazemi Oloum M, Abdi M, Seyfi F, Shahbazi V. The Impact of the Product Market Competition on the Readability of Financial Reporting. fa 2022; 14 (53) : 6
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year 14, Issue 53 (2022) Back to browse issues page
فصلنامه حسابداری مالی Quarterly Financial Accounting
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