The Impact of Financial Reporting Readability on the Accounting Information Quality with the Mediating Role of Managers’ Reporting Tone and Environmental, Social, and Governance Performance

Document Type : Research Paper

Authors

1 Assistant Professor, Department of Accounting, Va.C., Islamic Azad University, Varzaghan, Iran.

2 Associate Professor, Department of Accounting, Ta.C., Islamic Azad University, Tabriz, Iran.

3 MSc., Department of Accounting, Seraj Institute of Higher Education, Tabriz, Iran.

Abstract

The present study aims to investigate the impact of financial reporting readability on the accounting information quality, considering the mediating role of managers’ reporting tone and ESG performance. The statistical population consists of 149 companies listed on the Tehran Stock Exchange over the period 2018 to 2024, comprising a total of 1,043 firm-year observations. To test the research hypotheses, multiple regression analysis using panel data and the Sobel test were employed. The findings indicated that financial reporting readability has a positive and significant effect on the accounting information quality, managers’ reporting tone, and ESG performance. Furthermore, managers’ reporting tone and ESG performance each exert a positive and significant effect on the accounting information quality. Finally, managers’ reporting tone and ESG performance play a significant mediating role in the relationship between financial reporting readability and the accounting information quality.

Keywords

Main Subjects

References

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Journal of Accounting Advances
Volume 18, Issue 1
September 2026
Pages 285-321

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History

  • Receive Date: 19 December 2025
  • Revise Date: 04 April 2026
  • Accept Date: 03 June 2026

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