Investigating the influence of the tone and readability of financial reporting on the components of corporate governance in Tehran Stock Exchange

The current research investigates how the tone and readability of financial reporting influence corporate governance components on the Tehran Stock Exchange. Key independent variables include managerial, institutional, and family ownership, board size, board independence, gender diversity on the board, and audit committee characteristics. Tone and readability are dependent variables. The study analyzes data from ۱۲۵ companies over ten years (۲۰۱۳-۲۰۲۲) using multiple regression tests. Findings reveal that institutional ownership and board independence positively affect the tone of financial reporting, while managerial and family ownership negatively impact it. Similarly, audit committee meetings and board independence enhance readability, with managerial and family ownership adversely affecting it. The research also explores the dynamics of two hypothetical variables, R_t and L_t, through recurrence relations and simulations, highlighting oscillatory patterns and real-world challenges. A sophisticated mathematical model is introduced to examine the effects of corporate governance and external factors on tone and readability, employing recursive equations and stability analysis via eigenvalues. The findings provide insights for improving clarity and consistency in international financial reporting.

کلیدواژه ها:

Corporate Governance ، Tone of Financial Reporting ، Readability of Financial Reporting