The Effects of Aggressive and Conservative Risk Appetite on Financial Reporting Behavior Considering the Moderating Effect of Honesty- Humility

Financial reporting should be able to provide fair information about economic resources under control, capital structure, liquidity and flexibility rate, future borrowing needs, the degree of adaptation to changes in the economic, social and environmental environment, performance, profit distribution and cash flows, risk management, economic management capabilities and provide the firm with all stakeholders and users for economic decisions. The purpose of this study is to investigate the effects of organizational risk appetite on aggressive financial reporting behavior considering the moderating effect of honesty- humility. This research in terms of result is applied and from the perspective of descriptive-survey and in terms of time, a cross-sectional study 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. The results show that aggressive and conservative risk appetite has positive and significant effect on aggressive financial reporting behavior. Other results showed that honesty and humility as a moderating variable the relationship between aggressive and conservative risk appetite on aggressive financial reporting behavior does not moderate.