Explaining the Promoting and Inhibiting Social Components of Companies to Improve the Quality of Financial Statements

Corporate responsibility reporting relates to aspects of individual and social characteristics and corporate governance and the external conditions of the company. Given that the quality of financial reporting has a significant impact on capital markets and affects the decision-making process of users of financial reports, so the correct identification of factors affecting the quality of financial reporting from the perspective of different groups, can make financial reports as an important source of information. Rely on users to convert. Therefore, the purpose of this article is to explain the components of promoting and preventing corporate social responsibility to improve the quality of financial statements. The statistical population of the study is the members of the board of directors of companies listed on the Tehran Stock Exchange in 1998. 295 people were selected by simple random sampling to distribute the questionnaire. Schwartz (1998) standard social responsibility questionnaire was used to collect information in the field of theoretical foundations and research literature and to test research hypotheses to measure social responsibility. Also, to measure the quality of financial statements, the standard questionnaire of Freddy Van's financial reporting quality (2014) is used. K-S test was used to check the normality of data distribution and structural equation model and PLS software was used to test the hypotheses. The results of the research show that the dimension of individual characteristics and its promoting components and its deterrent components are effective in improving the quality of financial statements. The social dimension and corporate governance and its promotional and deterrent components affect the quality of financial statements. The external conditions and its promoting and deterrent components affect the quality of financial statements.