The Impact of Corporate Culture on ReadabilityOf Financial Reports

The existence of different cultural groups in the accounting world causes various perceptions and judgments about accounting relationships and concepts. Therefore, this research investigates the impact of Corporate Culture Characteristics on the Readability of Financial Reports among 29 companies listed on the Tehran Stock Exchange, using multi-regression analysis model during the years 2011 to 2018. Globe questionnaire was used to measure organizational culture and Foge index was used to study the readability of the financial reports. Results demonstrate futurism, gender equality, assertiveness, intra-group collectivism, out-group collectivism and altruism were significant on the readability of financial statements. Functionalism, avoidance of uncertainty, and power gap were not significant. The effect of control variable on company size was positive and non-significant and financial index was positive and significant.