فصلنامه بررسی های حسابداری و حسابرسی
پیاپی 115 (بهار 1403)

This study aims to uncover the factors influencing the acceptance of integrated reporting. The goal is to find how attitudes and behavioral intentions of university managers could be positively influenced and how the adoption of integrated reporting can be made easier.

To achieve the research goal, a quantitative research design was used. Questionnaires were used to gather the required data. They were filled out by the board of directors' members, including the University president, Vice president of education, Vice president of research and technology, Vice president of finance and administration, Vice president of culture, Vice president of students, and Director of monitoring and evaluation, from 30 leading public universities in Iran. The obtained data were analyzed by fitted structural equations. The criterion used to select the top universities was the most recent ranking listed in the reference database of Islamic World Sciences.

The final version of the acceptance model of integrated reporting showed that the acceptance process consists of four consecutive and path-dependent stages. The stages include knowledge; attitude (persuasion); behavioral intention (before decision); and acceptance or rejection (decision). Each stage is influenced by several innovation-specific or individual-specific variables. The specific variables of innovation include the characteristics of integrated reporting perceived by university senior managers, including perceived relative advantage, compatibility, lack of risk, and lack of complexity. The individual characteristics of these managers, such as mental norms and perceived behavior control, as well as determinants of change like perceived necessity, obligation, and guidance, are considered. Based on the presented empirical evidence, it can be claimed that the process of accepting integrated reporting in Iranian universities aligns with the Rogers decision-innovation process model. Therefore, the adoption of this new way of reporting, like many innovations, goes through the stages of knowledge, attitude, intention, and behavior. Meanwhile, the factors affecting each stage show their effects hierarchically through the mediating variables mentioned.

This research emphasizes the importance of a process approach in studying the dissemination and adoption of integrated reporting. It urges researchers to meticulously explore the hierarchy of innovation factors or specific variables, along with individual variables, understanding their impact mechanisms thoroughly. The outcomes of this research can inform the development of policies by the Iranian Ministry of Science regarding university reporting practices. The findings of this research determine how to smooth the path of acceptance of this new way of reporting. Research findings also demonstrated that decision-makers in the realm of adopting integrated reporting are primarily swayed by the perceived characteristics of this reporting method while paying minimal heed to its inherent features. The results obtained help planners to focus on trying to create a positive perception of people about the features of this innovation instead of focusing on the technical issues of integrated reporting. Therefore, it is advisable to conduct workshops, publish books and articles, and employ other methods of information dissemination and persuasion to enhance individuals' comprehension of the relative advantages and compatibility of this reporting method. This can alleviate concerns about the complexity of implementation and the risks associated with its adoption failure. Also, it is recommended that the administrators provide the necessary facilities for accepting integrated reporting and offering the necessary training to university employees. This will establish a foundation for university administrators to appraise positively the readiness of their team to accept and implement integrated reporting. In addition, By generating social pressures from both external and internal stakeholders, as well as reference groups, to develop and publish integrated reports in universities, it is feasible to reinforce the mental norms of university administrators in this direction. With the leading universities of the country taking the lead in this area, imitative mental norms can positively influence managers in other universities.

Auditing is a very important and respected profession that should render precise and quality information to win the public's trust in society. This study seeks to develop a model for audit quality considering the components of organizational culture.

A mixed-methods design was employed. In the qualitative phase, open, semi-structured interviews were conducted with 17 auditing experts and academics. In the quantitative phase, the sample consisted of 106 managers and employees from audit firms, providing services to companies listed on the Tehran Stock Exchange. Following the grounded theory, qualitative data obtained from the interviews were analyzed through open, axial, and selective coding in the MAXQDA. Finally, an audit quality model was developed based on the components of organizational culture with 15 axial codes and 85 themes. This model was fitted using structural equation modeling in SmartPLS.

According to the results of this study and the proposed model, the components of organizational culture that affect audit quality include empowerment, control and supervision, innovation and risk-taking, organizational ethics, communication management, group culture, cooperation culture, competitive culture, fundamental values, organizational vision and mission, attention to stakeholders, organizational goals and objectives, organizational excellence, organizational adaptability. Therefore, culture significantly influences the mechanisms driving audit quality, thus highlighting the imperative for audit firms to enhance their cultural practices.

The achieved results indicate that organizational culture is a vital element of organizational success, especially in quality improvement. The best starting point for improving an organization is to evaluate its culture because of its effect on individual and organizational behavior. Therefore, attention to the elements of organizational culture is essential for the successful growth of audit firms. In these firms, culture plays a major role in the processes that underlie audit quality. The findings also show that audit firms must develop not only the culture but also understand the relationship between organizational culture and quality. Such an understanding will help managers come up with efficient procedures and gain a competitive advantage. In general, the results suggest that organizational culture in the field of audit quality facilitates the provision of optimal services, effective decision-making, competitive advantage, and protection of stakeholders’ rights while increasing the productivity of the firm and the quality of audit services. Therefore, culture is a prerequisite for the development of audit firms and has a significant impact on audit quality. Future research efforts in audit institutions are encouraged to take into consideration dimensions of organizational culture as described in the model put forward by this study. Also, the subject of audit quality assessment should be studied in the framework of organizational intelligence, auditors' psychological characteristics, and professional ethics.

Some major factors influencing investment include the investment risk and the consequent cost of capital imposed upon companies. Different studies demonstrated that intra-industry information transfer significantly influences the reporting environment and the quality of financial information. In case intra-industry information transfer within highly connected industries influences investor decisions and disclosure quality, it is expected to affect investor reactions to earnings, perceived risk, and the cost of capital. This study investigates the effect of intra-industry connectedness and diversification of major shareholders' portfolios on the corporate cost of capital, considering the moderating roles of ownership concentration and board gender diversity.

To achieve this goal, panel data from 144 companies listed on the Tehran Stock Exchange were collected from their annual financial reports from 2013 to 2020. A multivariate regression analysis was used. The diversification of major shareholders' portfolios was measured using the Rhoades (1993) method and the Herfindahl-Hirschman Index (HHI), while intra-industry connectedness was measured according to a model put forward by Chiu (2014). The diversification of major shareholders' portfolios was calculated by identifying the major shareholder's portfolio for each year, including listed and over-the-counter companies, and computing the Herfindahl-Hirschman Index (HHI) based on this data. Subsequently, the diversification index for each company-year was determined by computing the weighted average, considering the ownership percentage of major shareholders.

The results indicate a significant negative impact of both the diversification of major shareholders' portfolios and intra-industry connectedness on corporate cost of capital. Additionally, the degree of ownership concentration and gender diversity on the board shapes the magnitude of these associations. Ownership concentration strengthens the relationship between portfolio diversification and the cost of capital, while it weakens the relationship between intra-industry connectedness and the cost of capital. However, the presence of women on the board attenuates both relationships, implying that in companies with female board members, these relationships are less pronounced.

The confirmed negative relationship between the diversification of major shareholders' portfolios and the cost of capital aligns with the informational perspective. According to this perspective, the increased number and diversity of major shareholders' portfolios lead to higher costs for obtaining insider information, prompting the major shareholders to focus on public information and demand the investee company to provide more transparent and higher-quality information. This, in turn, reduces information asymmetry and the cost of capital. Furthermore, the results indicate a significant negative relationship between intra-industry connectedness and corporate cost of capital. Finally, the findings confirm the moderating effects of ownership concentration and board gender diversity on these relationships.

An investment-making decision is a multifaceted process that requires the investor's precision, punctuality, and timely decision. This process is influenced by future expectations and the analysis of several factors the investor must consider to achieve a specific goal. Paralysis in the analysis of these factors causes a delay in obtaining profits or the realization of unwanted losses. Therefore, the main goal of the current study is to investigate the effect of the dimensions of the analysis paralysis on investors’ decisions in the Tehran Stock Exchange.

To collect data and information, libraries, interviews, and field methods were used simultaneously. For data analysis in the qualitative section of the research, the Fuzzy Delphi method, Excel, and MaxQDA software were employed. In the quantitative section, structural equation modeling and Smart PLS software were utilized. The Fuzzy Delphi method was used to analyze the qualitative data. After extracting the indices and influential variables in the model and thematic analysis, the initial influential variables were identified and presented to the experts in the form of a questionnaire to gather their opinions. Then, their answers were classified and the lack of agreement was announced. This process was repeated until a consensus was reached and the way of quantifying and measuring specific research variables in four political, social, cultural and economic dimensions were examined and analyzed.

According to the results of the Delphi section, the final research model was approved with two variables of analytical paralysis and investors’ decisions. The results of path coefficients showed a negative and significant relationship between analysis paralysis and investors' decisions, although there was a negative and significant relationship with investors' short-term decisions, with no significant relationship with investors' long-term decisions. Among the dimensions of analysis paralysis, the political dimension has the greatest impact on the analytical paralysis of investors' decision-making. Then the economic, social and cultural dimensions have respectively the greatest effect on the analytical paralysis of investors' decision-making.

The findings showed that analytical paralysis caused by abundant and fleeting data and political, economic, social and cultural instability will cause different behaviors among investors and these behaviors will affect people's investment decisions. In other words, analytical paralysis will increase the instability of investors in the decision-making process. Faced with such factors, investors will not be able to react appropriately and avoid deviations in decision-making in the short term. For this reason, in the conditions of abundant and unstable data affecting decision-making, changing from short-term decisions to long-term decisions can have fewer negative effects. Therefore, it is suggested that the trustees of the capital market reduce the analytical paralysis of the investors by informing and providing reliable and timely information to the society and help them in the proper management of their capital.

The geographical conditions of Iran have contributed to the occurrence of diverse natural hazards. Among these hazards, drought emerges as one of the most significant, persisting over the Iranian plateau for several years. This study aims to investigate the moderating role of the phenomenon in the relationship between corporate social responsibility (CSR) and financial performance among listed companies in the Tehran Stock Exchange (TSE).
The hypotheses of this study were tested using a sample of 225 companies listed on the Tehran Stock Exchange from 2011 to 2021, employing multivariate regression models. The Standardized Precipitation Index (SPI) was utilized to measure drought in various provinces of Iran, while financial performance was measured using two indicators i.e. return on assets and return on equity. CSR was measured based on the KLD index.
The findings of this research demonstrated that corporate social responsibility has a positive and significant impact on the financial performance of companies, and drought strengthens this relationship.
Drought, as one of the main consequences of climate change, is a significant and tangible issue in Iran. Exploring its consequences in the capital market is of considerable importance. The results of this research indicate that the positive impact of corporate social responsibility on financial performance is more pronounced among companies affected by drought. The moderating role of this variable in the relationship between CSR and financial performance has not been extensively studied in the domestic and international literature. Therefore, this study contributes significantly to the extant literature, providing valuable insights for various stakeholders. The obtained results suggest that companies operating in drought-affected regions, facing unique challenges and severe risks associated with water scarcity, resource depletion, and environmental degradation, attempt to mitigate the adverse effects of drought on their operations effectively. By engaging in CSR activities that address specific issues such as water conservation initiatives, sustainable resource management, and community support programs, these companies strive to reduce the formation of a negative perception (stemming from drought conditions) by stakeholders regarding their performance. This strategy, embraced by companies grappling with drought, could amplify the influence of corporate social responsibility on the financial performance of drought-affected businesses, particularly those striving to bolster environmental and social sustainability while fortifying their adaptability and resilience in the face of demanding climate conditions. The research findings provide valuable insights for investors and financial analysts in evaluating the relationship between corporate social responsibility and financial performance, especially in drought-affected regions. They indicate that companies with strong corporate social responsibility exhibit better financial performance, and this positive relationship is even more pronounced when facing challenges arising from drought. These results can help investors and analysts make informed investment decisions.

In recent years, the value of auditing, the role played by auditors, and the quality of communication between auditors and the users of their reports, have been criticized. For this reason, significant legislative reforms have been adopted to restore market confidence and strengthen credibility in audit services. Accordingly, to improve the informative value of the auditor reports, the 701 international auditing standard was implemented. Since December 2016, certain criteria have been established to communicate key audit matters to corporate governance stakeholders (management) and to disclose them in the auditor’s report. In Iran, this standard was adopted in 2021, and the revisions became effective for auditing financial statements for periods ending on or after March 21, 2022. This paper aims to identify the key audit matters disclosed in the independent auditor's reports during the inaugural year of the implementation of the 701 audit standard. Furthermore, it seeks to analyze the factors influencing the quantity of key audit matters disclosed in the auditor's reports for the fiscal year concluding on March 20, 2023.

Data are collected from the independent auditor's report of 589 firms listed on the Tehran Stock Exchange and over the counter. The titles and count of key audit matters were categorized by industry, followed by an examination of the relationship between the number of key audit matters disclosed in audit reports and factors such as "size of audit institution," "type of auditor's opinion," and "complexity of the company under scrutiny" using Poisson regression. This investigation was conducted across two levels i.e., all industries and groups of industries. Financial performance, financial leverage, size, and the growth of the company's operating income were included as control variables.

The results related to the first part of the study indicate that in the first year of implementation of this standard, 166 key audit matters were disclosed in the audit reports of 106 companies. Among them, "related party transactions" and "recognition of revenue" have the most frequency. Around 11 percent of the audit reports for companies featured at least one key audit matter, while approximately 80 percent of audit reports for insurance companies and banks included key audit matters. In the second part, the relationship between "the number of key audit matters" disclosed in the audit reports with "the size of the audit institution", "the type of auditor's opinion” and “complexity of the company under consideration" was investigated. The findings indicated that at both the overall industry level and within specific industry groups, there was no significant association between the number of key audit matters and any of the examined variables. However, in the insurance industry, banks, and intermediary financial institutions, a positive correlation was observed between the number of key audit matters disclosed in the audit report and the complexity of the company.

"Transactions with related parties" and "recognition of revenue" are the most important matters reflected in the audit reports of the fiscal year ending March 2023. The size of the audit institution, the type of audit opinion, and the complexity of the company under consideration have no impact on the number of key audit matters included in the audit reports. However, in the insurance industry group, banks, and intermediary financial institutions, the number of key audit matters with the complexity of the company under consideration is directly related. The results of this study can be used by independent auditors to identify the reaction of colleagues to the disclosure of key audit matters. Also, Financial analysts can calibrate their level of reliance and confidence in audit reports by developing a basic comprehension of the implementation of standard 701.