Design and Validation of a Model of Institutional Investors' Perception of Disclosed Accounting Information

Document Type : Research Paper

Authors

1 Department of Accounting, Qa.c., Islamic Azad University, Qazvin, Iran.

2 Department of Accounting, Tarbiat Modares University, Tehran, Iran.

Abstract

This study examines the effects of strong corporate culture and sudden CEO turnovers on financial statement comparability. Strong corporate culture enhances financial statement comparability through two channels: clarifying corporate goals and procedures, and reducing managers’ incentives for inaccurate reporting. Sudden CEO turnovers also influence firm performance, financial report quality, and statement comparability. Data from 110 companies listed on the Tehran Stock Exchange were analyzed using systematic elimination sampling over 2013–2022, with hypotheses tested via multivariate panel data regression. Results show that strong corporate culture positively and significantly affects financial statement comparability. Even during sudden CEO turnovers, strong corporate culture positively affects comparability. These findings align with arguments that strong corporate culture reduces managerial opportunism, leading to more consistent decisions in similar economic events and enhancing accounting practices and financial information quality.

Keywords

Main Subjects

References

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Journal of Accounting Advances
Volume 17, Issue 1
September 2025
Pages 185-223

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History

  • Receive Date: 26 May 2025
  • Revise Date: 14 August 2025
  • Accept Date: 31 August 2025

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