The Role of Stock Market Development on Promoting Concepts of Financial Reporting

The purpose of this study was to investigate the role of stock market development on promoting financial reporting indicators (including; financial reporting quality, level of corporate social responsibility disclosure, corporate governance, audit quality and readability of financial statements) in companies listed on the Tehran Stock Exchange. For this purpose, five hypotheses to study this issue were compiled and data related to 140 member companies of the stock exchange for the period between 2006 to 2019 (consisting of two periods of the capital market, including 2006-2012 and 2013-2019) Were analyzed. The research regression model was investigated and tested using panel data method with fixed effects approach. The results showed that in the second period of the stock market compared to the first period, due to increased supervision and transparency, the establishment of regulatory mechanisms such as the audit committee, the growth of disclosure requirements in the stock market and move towards more international financial reporting standards Among the financial reporting indicators, financial reporting quality indicators, the level of corporate social responsibility disclosure and audit quality are affected by the development of the stock market in the second period of the capital market compared to the first period and are affected by the increasing effect of stock market development. On the other hand, the results confirm that the indicators of corporate governance and readability of financial statements were not affected by the development of the stock market in the second period of the capital market compared to the first period.