The Effect of Social Pressure and Aggressive and Conservative Risk Appetite on Decisions in Providing Financial Reporting

Message:
Article Type:
Research/Original Article (دارای رتبه معتبر)
Abstract:
Purpose

Financial reporting is a tool for communicating with the company's environment and the chief financial officer is directly responsible for the preparation and quality of financial reporting. Chief financial officers may abandon their ethical beliefs due to organizational pressures and action to provide fraudulent financial reporting. The purpose of this study is to investigate the effect of social pressure and risk appetite on decisions in providing financial reporting.

Method

This research is applied in terms of purpose and descriptive-survey in terms of research method and the information required for this study was collected in 2021. The statistical population of this study was Chief financial officers and Chief Accountants companies listed on the Tehran Stock Exchange. The sample selection method was based on random sampling that finally, 271 questionnaires were answered and the information obtained has been measurement in statistical analyzes. The study hypotheses have been tested with the structural equation modeling approach using Smart PLS software.

Results

The results show that the obedience social pressure and aggressive risk appetite has positive and significant effect on incorrect decisions in providing financial reporting. Other results showed that conformity social pressure and conservative risk appetite has negative and significant effect on incorrect decisions in providing financial reporting.

Conclusion

The results of this research can be applied in terms of influence risk-based auditing, improving corporate governance mechanisms, increase the quality features of financial reporting and decisions of investors, legislators and other stakeholders.

Contribution:

The research findings, while developing the literature on social pressure and risk appetite, can help increase the quality of financial reporting and the dissemination of fair information to stakeholders, especially shareholders.

Language:
Persian
Published:
A Quarerly Journal Of Empirical Reasearch Of Financial Accounting, Volume:9 Issue: 2, 2022
Pages:
169 to 192
https://magiran.com/p2491478  
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