The Effect of Social Pressures Anomie on Aggressive Financial Reporting: Analysis of the Theory of Managerial Critical Perception

As pressures of accounting fraud and corporate distortion behaviors emerge on the capital market over the past two decades, social pressures on this market have increased steadily. In fact, due to underdeveloped feedback flow infrastructure and lack of financial transparency of companies, even in the face of social pressures, lack of institutional oversight leads to a high level of distortion in financial reporting, such as Aggressive Financial Reporting. The Purpose of this research is The Effect of Social Pressures Anomie on Aggressive Financial Reporting by Analysis of the Theory of Managerial Critical Perception. Therefore, the present study investigated the impact of stakeholder social pressures on bold financial reporting using the structural equation modeling approach and partial least squares analysis (PLS) while fitting the model's utility. In this study, in order to measure the externalizing variable, ie social pressure of the stakeholders, through the analysis of Meta-synthesis a researcher-made questionnaire was developed with the participation of 15 research experts. Then, the two conservative measures of Khan and Watts (2009) and the difference between the voluntary accruals of the company and the average of the voluntary accruals of the other companies examined by Heltzer et al (2012) and Kothari et al (2005). The questionnaire was sent to 142 CEOs of listed companies in Tehran Stock Exchange and finally after many follow-up, the 105 questionnaires were completed and returned and used as a final sample for analysis. After confirming the acceptable fit of the measurement and structural models of the research, in accordance with the prediction of harvest management theory, the results showed that the social pressures of the stakeholders have a positive and significant effect on bold financial reporting.