The moderating effect of ownership structure on the relationship between conservatism and financial reporting readability

Jamalianpour, Mozaffar; Pouraghajan, Amirreza; Shamsfard, Mehrnoush; Baruni, Sara

The moderating effect of ownership structure on the relationship between conservatism and financial reporting readability

Document Type : Original Article

Authors

Mozaffar Jamalianpour ¹

Amirreza Pouraghajan ¹

Mehrnoush Shamsfard ²

Sara Baruni ³

¹ Department of Accounting, faculty of management and accounting, Allameh tabatabaei university, Tehran, Iran

² artificial intelligence, robotics and cognitive computing, computer engineering and science, Shahid Beheshti University, Tehran, Iran

³ Machine intelligence an robotics, School of electrical and computer engineering, university of tehran, tehran , iran

Abstract

With the development of the capital market in Iran, it is of particular importance to pay attention to the factors that somehow affect the decision-making of market participants. In recent years, the readability of financial reports has received much attention. In this study, the moderating effect of ownership structure on the relationship between conservatism and readability of financial reporting has been investigated. In this research, artificial intelligence has been used to examine the financial reporting readability variable. For this purpose, this issue was investigated by selecting 158 companies admitted to the Tehran Stock Exchange during the years 1398 to 1400. Logistic regression was used to examine each of the hypotheses. In this study, Eviews and Stata software were used for data analysis. The research results indicate that there is a negative and significant relationship between conservatism and the readability of financial reporting. Institutional ownership, and concentrated ownership have a positive and significant effect on the relationship between conservatism and the readability of financial reporting, and governmental ownership does not affect the relationship between conservatism and financial reporting readability.

Keywords

Conservatism

Financial reporting readability

Ownership structure