Managers may be more inclined to adopt conservative financial policies in response to social crises and unstable conditions. Such an approach can reduce corporate investments, growth opportunities, and available financial resources, ultimately exerting a negative impact on firms’ financial performance through management’s financial decisions. The primary objective of this paper is, therefore, to examine the mediating role of financial crises in the relationship between social crises and the quality of managers’ financial decision-making. The study population comprises companies listed on the Tehran Stock Exchange (TSE) from 2018 to 2023. A systematic elimination method was employed to select the research sample. For data analysis, EViews 10 software and multiple regression models were utilized. The empirical results reveal a significant negative association between social crises and the quality of managers’ financial decision-making. In contrast, a significant positive association is observed between social crises and financial crises. However, as the financial crisis variable was not statistically significant in the regression analysis involving both the independent and mediating variables, the mediating role of financial crises in the association between social crises and the quality of financial decision-making by managers is rejected. This study contributes to managerial and policy perspectives by providing deeper insights into the challenges associated with decision-making and by helping to bridge the existing information gap in this domain. The findings underscore the importance of managers adopting more effective strategies during unstable and crisis conditions to ensure operational continuity and enhance organizational resilience. In practical terms, developing flexible financial programs that enable firms to adjust rapidly to sudden changes is essential. Additional measures include strengthening risk management systems, establishing financial reserves, reducing unnecessary costs, and prioritizing investment projects with faster payback periods. The novelty of this research lies in being the first to investigate the impact of social crises on the quality of managers’ financial decision-making (financial performance), while simultaneously examining the mediating role of financial crises—an issue previously unexplored in either domestic or international studies.
The purpose of this study is to develop a corporate social responsibility (CSR) reporting framework based on a content analysis of international reporting practices for companies listed on the stock exchange. This qualitative research employs content analysis to examine global CSR disclosure patterns. Data were collected from publicly listed companies, and a systematic approach was adopted to identify the key dimensions and indicators relevant to CSR reporting. The study proposes a comprehensive CSR reporting model comprising four primary dimensions: value creation, corporate governance, social participation, and environmental protection. Subcategories include investment in valuable products, sustainable services, ethical governance, transparency, environmental stewardship, and compliance with social and ethical standards. Together, these elements form the foundation of a robust framework that enables companies to align with corporate governance principles. This framework provides a structured approach to CSR reporting, supporting firms in enhancing transparency, accountability, and adherence to governance guidelines in their social responsibility practices. The study contributes to the literature by presenting an initial, context-specific CSR reporting model tailored to stock exchange–listed companies, addressing both regulatory requirements and stakeholder expectations.
This study examines the relationship between the disclosure of Key Audit Matters (KAMs) and the assessment of financial distress among companies listed on the Tehran Stock Exchange (TSE). Grounded in Agency Theory, Signaling Theory, and Transaction Cost Theory, the research posits that KAM disclosures help mitigate information asymmetry between managers and shareholders. According to Signaling Theory, such disclosures convey signals about a firm’s market risk. In contrast, Transaction Cost Theory suggests that greater transparency—through KAM disclosure—can reduce transaction costs and facilitate the evaluation of financial distress. The analysis investigates the association between the quantity and characteristics of KAM disclosures and financial distress using four distinct models. Based on a systematic elimination sampling method, 93 firms were selected, covering eleven years from 2012 to 2022, yielding 1,032 firm-year observations. The study’s hypotheses were tested using multivariate regression analysis performed with EViews software and the partial least squares (PLS) approach. The results indicate a significant relationship between the quantity, risk level, classification, and nature of KAM disclosures and firms’ levels of financial distress.
In alignment with international accounting standards, the Iran Audit Organization (IAO) has required corporations to disclose risk information in their financial statements since 2019. This study is the first to examine the informational value of these newly mandated disclosures under Iran’s accounting standards. While prior international research has examined the effects of risk disclosure, this study fills a significant gap by focusing on an emerging market—specifically, Iran’s distinctive institutional environment—where accounting reforms and disclosure practices remain underexplored. To achieve this objective, we analyzed 1,580 firm-year observations from companies listed on the Tehran Stock Exchange (TSE) between 2014 and 2023 using multivariate panel data regressions with fixed effects. The empirical results show that mandatory risk disclosure is statistically unrelated to firms’ cost of capital. Furthermore, the interaction terms between mandatory risk disclosure and corporate governance variables—such as ownership concentration and board independence—are also insignificant. However, the findings indicate that both board independence and institutional ownership are negatively and significantly associated with the cost of capital. These results suggest that although the adoption of new accounting standards has increased the quantity of mandatory risk disclosures, such disclosures do not necessarily reduce the cost of capital within the Iranian context. This outcome may stem from superficial compliance with disclosure requirements and limited oversight by audit committees and independent auditors. Overall, this study offers new insights into how transitional economies navigate disclosure mandates, with actionable implications for improving transparency, strengthening corporate governance, and realizing the potential benefits of accounting reforms.
The current study aims to outline the legitimacy perspectives of digital accounting in light of the increasing need for more advanced software services in Iran. A mixed-methods approach was employed, combining qualitative and quantitative analytical procedures to achieve the study’s objectives. In the qualitative phase, grounded theory and Delphi analyses were conducted based on input from 14 experts and scholars familiar with the core phenomenon under investigation. In the quantitative phase, a futures studies approach was applied to identify potential scenarios that could define the legitimacy perspectives of digital accounting in the context of enhanced software service requirements in Iran. Based on the 14 interviews, the qualitative findings produced 282 open codes categorized into 33 conceptual themes, six core components, and three structural dimensions, forming the foundational framework for the legitimacy of digital accounting. Conversely, the quantitative results—through matrix analysis—identified four scenarios along two key axes: systemic mechanisms related to financial planning and those associated with the supply chain. According to the mathematical function matrix, the most probable scenario emerged at the intersection of high-impact systemic mechanisms associated with the supply chain and low-impact mechanisms related to financial planning. This scenario, termed the “Amadic Scenario,” offers a more reliable justification for the legitimacy of digital accounting grounded in the advancement of software services in Iran’s future. In interpreting these findings, it is important to note that achieving legitimacy for digital accounting—based on software service development requires logistical capabilities that enhance inventory and resource management within production systems, thereby ensuring higher computational capacity and operational efficiency.
Low market liquidity is often a direct consequence of economic policy uncertainty. Persistent policy fluctuations and a lack of transparency in economic decision-making erode investor confidence, resulting in lower trading volumes and reduced liquidity. Most stock markets around the world are not frictionless; increased economic policy uncertainty, high transaction costs, investor protection concerns, and information asymmetry further exacerbate market frictions. Changes in government policies or actions that alter the economic environment can significantly influence price reactions in financial markets. This study aims to investigate the relationship between economic policy uncertainty and stock liquidity, as well as the moderating effect of information disclosure on this relationship. To achieve this, accurate and consistent data were required; therefore, all companies listed on the Tehran Stock Exchange (TSE) were considered the study population. Data from 64 listed firms, spanning the period 2007–2021, were collected as the accessible sample to test the research hypotheses. Following the model proposed by Baker et al. (2016), a newspaper-based index of policy uncertainty was used to measure economic policy uncertainty. The moderating variable—information disclosure—was assessed using the Botosan (1997) disclosure index. Panel data econometrics and Estimated Generalized Least Squares (EGLS) regression models were employed to test the hypotheses, supported by diagnostic tests for stationarity, multicollinearity, normality, heteroscedasticity, and autocorrelation. The results indicate that economic policy uncertainty has a negative effect on stock liquidity. Moreover, economic policy uncertainty has no positive influence on information disclosure. Finally, information disclosure was found to mitigate the adverse impact of economic policy uncertainty on stock liquidity, confirming its moderating role. Overall, the findings suggest that managers tend to produce more information in response to information asymmetry shocks induced by economic policy uncertainty, thereby bridging the informational gap between insiders and market participants. When information asymmetry intensifies due to policy uncertainty—between informed traders (firms) and uninformed traders (potential investors)—managers have more substantial incentives to engage in voluntary disclosure to reduce informational frictions.
This study provides an in-depth analysis of the development and intellectual structure of investor sentiment, a field that has emerged as a central topic in behavioral finance. Given its broad influence on financial and economic variables, identifying key research trends, intellectual contributions, and emerging themes is essential. A systematic search of the Web of Science (WoS) database was conducted in March 2025 using selected keywords, yielding 4,546 relevant publications. Due to the 500-record-per-batch export limit, the data were downloaded in multiple batches in Plain Text format and analyzed using the Bibliometrix package in R. The results indicate substantial growth in research on investor sentiment since the early 2000s. The keyword “investor sentiment” appeared 1,147 times across the dataset. The International Review of Financial Analysis leads the field with 158 related publications. Moreover, China and extensive international collaborations have played a significant role in shaping the intellectual landscape of this domain. Overall, investor sentiment is a dynamic, rapidly evolving area of behavioral finance that continues to attract growing global academic attention.
All industrial activities rely on water, either directly for production or indirectly to support manufacturing processes. Given the severe water scarcity in Iran, manufacturing companies face substantial challenges in managing their water resources. This study investigates the barriers to adopting water accounting in Iran’s manufacturing sector amid the country’s ongoing water crisis. A novel six-dimensional framework is proposed that encompasses technical/infrastructural, regulatory/policy, human capital, cultural/organizational, economic/financial, and external environmental barriers. Using a descriptive–survey design, data were collected from 170 accountants and analyzed through exploratory factor analysis (EFA), confirmatory factor analysis (CFA), and structural equation modeling (SEM) using SPSS 26 and AMOS 24. The results indicate that technical/infrastructural barriers exert the strongest influence, followed by regulatory and policy gaps, while all six dimensions demonstrate interrelated effects. This study contributes a context-specific analytical framework that addresses the research gap in Iran’s underexplored manufacturing sector and provides practical insights for sustainable water management. By systematically identifying and evaluating the interconnected barriers, the research offers actionable recommendations to enhance the implementation of water accounting and promote more sustainable resource management practices.
Value creation is among the top strategic goals of companies as it plays a leading role in their sustainability and success in a competitive market and often leads to their cash flow growth. One of the requirements for value creation is the efficient and effective utilization of company’s resources. In view of that, controlling costs and managing financial resources effectively as well as investing in value-creating projects can be the keys to company’s success in boosting value chain performance and cash flows. The present study was to investigate the effects of cost efficiency and investment efficiency on value chain performance and cash flow growth in companies. The statistical population consisted of the companies listed on the Tehran Stock Exchange, Iran, during 2017-2022, of which 115 samples were selected using purposive sampling. Multivariate regression was then practiced to analyze the data. The study results at the 95% confidence level demonstrated that cost efficiency and investment efficiency have significant positive effects on value chain performance. Moreover, cost efficiency and investment efficiency increase company’s cash flows. In other words, controlling and managing costs and avoiding over- or underinvestment improve overall performance in companies throughout value chain steps and lead to their cash flow growth. With respect to the study results, policymakers can effectively contribute to improving company’s performance and value creation by developing regulations, providing financial support, and establishing other incentives for the ones implementing cost efficiency as a strategic thinking.
In today’s competitive environment, possessing tax knowledge alone is insufficient for success in tax consulting; the use of effective client acquisition techniques is essential. Accordingly, this study aims to identify client acquisition strategies employed by members of the Iranian Association of Certified Tax Consultants during 2024–2025. In the first phase, a survey was conducted among association members to identify the range of client acquisition methods they employ. Following processes of homogenization, integration, and the elimination of redundant items, the final set of techniques was determined. In the second phase, these techniques were validated through a two-stage screening process using the fuzzy Delphi method, incorporating expert opinions. Finally, the Step-wise Weight Assessment Ratio Analysis (SWARA) method was applied to rank the techniques based on expert evaluations. The results indicate that word-of-mouth marketing ranked first, followed by client referral programs, while advertising through local radio and television received the lowest ranking. The novelty of this study lies in developing a localized and structured model tailored to the Iranian context by combining multiple multi-criteria decision-making methods. This topic has not been previously explored in the national literature.
A management commentary is a descriptive report on the various aspects of a company's operations that can provide useful information to investors. According to the regulations of the Securities and Exchange Organization of Iran, the companies' board of directors has been mandated since 2017 to prepare and submit management commentary. This report has been designed as an essential element in offering information to the capital market and improving the usefulness of the information companies provide. The present study, therefore, aims to investigate the effects of issuing regulations for management commentary on the value relevance of earnings. Considering that these reports must be audited and disclosed at specific intervals, the present study also examines the interactive effect of audit quality and the issuance of regulations for management commentary reporting on the value relevance of earnings. The statistical population of this study includes companies listed on the Tehran Stock Exchange (TSE) and Iran Fara Bourse (IFB) from 2012 to 2023. A linear regression model was used to test the study hypotheses.The results show that issuing regulations to present management commentary has increased the value relevance of companies' earnings. In other words, after these regulations were issued, the quality of companies' earnings increased. Based on the results obtained, audit quality also enhances the effect of issuing rules for management commentary reporting on the value relevance of earnings; that is, when the audit quality is higher, issuing regulations for management commentary reporting has a more significant potential to improve the earnings quality.
The present study was to investigate the relationship between board diversity and environmental performance with much emphasis on the moderating effect of board independence in this context. Four research hypotheses were tested and analyzed using the data from 108 companies listed on the Tehran Stock Exchange (TSE), Tehran, Iran, during 2018- 2023 (including 648 company-year observations) through Logistic Regression (LR). Environmental performance refers to the extent to which a company pays attention to the impacts of its operations on environmental pollution and was assessed through three operational components in the form of an environmental performance checklist. The study results established a significant positive relationship between age and tenure diversity and environmental performance in the companies listed on the TSE, Tehran, Iran. However, no significant relationship was found between gender diversity and environmental performance. As well, board independence and tenure diversity had moderating effects in the relationship between age diversity and environmental performance, but board independence could not moderate the relationship between gender diversity and environmental performance. The findings of this study make valuable implications for understanding how board diversity can serve as a driver for the environmental performance issue.
The literature on corporate sustainability performance indicates that researchers have often focused on the individual dimensions of corporate sustainability performance. However, few studies have comprehensively measured the company's sustainability performance. In fact, many studies overlook the quality of sustainability reports, which can contain more information content. Therefore, this study investigates the information content of the sustainability reporting quality of listed companies in Iran. Examining 199 companies from 2014 to 2022, the study uses panel data analysis in EViews 9 software. The quality of sustainability reporting is measured using the reliability index by Sebrina and the Ohlson market value model is used to determine the information content. Findings indicate that the quality of sustainability reporting has information content but has not increased the information content of financial statements. This may be due to the novelty of sustainability reporting in Iranian companies. It is suggested that legislators conduct necessary investigations regarding the cost-benefit of making companies' sustainability reporting discretionary or mandatory.
The purpose of this study is to analyze the effect of carbon emission disclosure on firm value and the interaction of foreign ownership and foreign board diversity as moderation variables. This study is a causal associative study with a quantitative approach, researchers used 77 samples from several company sectors included in the carbon intensive industry listed on the Indonesia Stock Exchange (IDX) from 2021 to 2023 using moderated regression analysis. The results of the analysis show that carbon emission disclosure has a significant positive effect on firm value. foreign board diversity moderates negatively and foreign ownership does not moderate the relationship between carbon emission disclosure and firm value. The result practically can be a consideration for companies in carrying out carbon disclosure as well as input for investors in making investment decisions. The implication of this study is that it can be a consideration for the authorities in preparing regulations related to carbon emission disclosure, especially in Indonesia which is still voluntary.
With the implementation of the internal control process, we want to obtain reasonable assurance about the effectiveness and efficiency of operations and the ability to rely on financial reporting and compliance with the laws and other vital elements for the company’s survival. The current study aims to investigate whether financial restatement is affected by human factors of listed companies on the Tehran Stock Exchange. The statistical population of this study includes all listed firms on the Tehran Stock Exchange during 2018-2023.The results show a positive and significant relationship between employee support and the occurrence of financial restatements. Further, the results confirm a positive relationship between the ability of managers and financial restatement. By the way, a negative relationship between the existence of an internal control weakness in financial reporting and the financial restatement obtained. This study provides evidences that the support of human force, as one of the factors in implementing internal control, contributes to the role of internal control on financial restatement.
Financial reports are essential for illustrating social realities and providing a solid informational foundation to meet the demands of financial markets and assess market economic performance. However, financial reports do not fulfill their intended role due to quality, stability, and dynamics issues, and existing literature has yet to offer a suitable framework to address these issues. This study introduces a new concept aimed at enhancing the credibility of financial reports, both now and in the future. Adopting a comprehensive approach, we identify and rank the factors that influence the explanation and realization of this concept. The theoretical framework supporting this new concept includes stakeholder and organizational legitimacy theories. The research methodology comprises two parts: the first involves theme analysis based on interviews with 18 experts, and the second uses the fuzzy Delphi method to analyze and rank components through a questionnaire administered to 60 participants. The four expert groups involved in the study were accounting information providers, accounting information users, independent and internal auditors, and financial and accounting researchers, all carefully selected via snowball sampling for their expertise and insights. The research was conducted in the latter half of 2022. Findings reveal that the factors affecting the credibility of financial reports, ranked by their influence, include profit quality, audit report content, stock status, market performance, the quality of the accounting information system, organizational culture, specific non-financial company characteristics, financial ratios, corporate governance, audit quality, mandatory and optional disclosures, and risk analysis.
The comprehensive Performance Measurement System (PMS) clearly emphasizes the managers' role by explaining strategic purposes and various dimensions of performance. The present study aims to analyze empirical evidence about the effect of managers' emphasis on a particular type of function and complexity levels of PMS on its benefits and organizational performance based on Levers of Control (LOC) and Contingency Theory (CT). The study was conducted in 46 companies active in Persian Gulf Petrochemical Holding in 2022. Results from data modeling using partial least squares structural equations indicate that a higher emphasis on the interactive function of PMS increases its benefits in the studied sample, with no influence from the complexity level of PMS. In other words, the effect of diagnostic and interactive functions of PMS on its benefits have no significant difference in simple and complex systems. Results from the model's sensitivity analysis show the stability of findings based on different assumptions.
Algorithmic trading (AT) has become widely used recently because of its high speed and accuracy in implementing diverse and complex strategies. Using algorithms also allows traders to execute their trading strategies in a high volume and numerous transactions without involving human emotions. While AT has many advantages, it also carries some risks due to the uncertain stock market conditions and the impact of news and political, social, and other events. Therefore, forming a stock portfolio and stabilizing against uncertainties, in conjunction with accurate market predictions, can significantly reduce risk.in this paper, For the first time, we developed a robust portfolio optimization model based on LSTM prediction using the AT strategies based on short-term moving average techniques. First, we implement the strategies derived from the VLMA, FLMA, EMA, and SMA algorithms based on the LSTM's predicted price. Secondly, we develop a robust portfolio optimization model using the abovementioned algorithms. The results show that in both stock and crypto portfolios, moving average strategies will perform better than the benchmark strategy (Buy-and-hold). Also, when the model parameters are deterministic, the robust portfolio constructed stocks and crypto will perform better than Buy-and-hold for all algorithms. However, when the variance from certain models increases, VLMA and FLMA (15-day holding) for stocks and FLMA (30-day holding) for the crypto will not be a suitable investment option. Additionally, portfolios constructed using all AT strategies and all assets outperform the benchmark portfolio in certain and non-certain markets.
The current mixed type of research (qualitative and exploratory) aims to identify behavioral financial components using emotional-cognitive dimensions and their role in the capital market crisis. The research findings contribute to academic knowledge and have significant practical implications, providing valuable insights for professionals in the finance and investment field, policymakers, and other stakeholders. In the first stage of the research, interviews were conducted with 21 experts, including professors of accounting and finance, managers of official brokerages, and official analysts of the capital market. The factors affecting behavioral finance with an emotional-cognitive approach and its role in the capital market crisis were presented. The results showed that the most important causes of financial behavior are people's social attitudes towards the investment field, emotional and cognitive factors, the type and manner of accessing information, and behavioral and individual tendencies of investors. The basis of this irrational behavior can be factors such as the economy involved in sanctions and inflationary conditions, the lack of dynamics of capital market rules, the misperception of investors, and the type of ownership of stock companies. The diverse characteristics of industries, the policies of the stock exchange organization and the governors, the uncertainty of economic policy, the society itself, and political factors can be raised as interventionists in creating critical conditions and moving towards behavioral finance. Appropriate training, governance attitudes to this matter, the presence of consultants and analysts, and monitoring and increasing the financial literacy of investors are suitable strategies to respond to the efficiency of the capital market. Not paying attention to behavioral finance will adversely affect investors, macroeconomics, society, and the capital market. In the second stage of the research, by using exploratory analysis and by distributing a questionnaire made by the researcher and taken from the qualitative model of the study among 340 capital market participants and with exploratory analysis, it was determined that 11 basic concepts (influential factors) of behavioral finance have the most significant impact. It has emotional and cognitive biases in Iran's capital market crisis.
A 2×2 full factorial experiment is designed by manipulating participants' exposure to the positive behavioral information of a Chief Financial Officer (CFO) as a violator of Related Party Transactions (RPT) (high versus low exposure) and his related assertions (combined versus denial assertion). The credibility and reporting judgments of internal auditors can be influenced by these manipulated variables in accordance with the mere exposure effect and the benefit of the doubt. This study included 80 Iranian internal auditors as participants. The results suggest that exposure to the violator’s positive behavioral information enhances internal auditors’ perceived credibility of the violator, leading to a decreased likelihood of reporting the RPT. Furthermore, the findings demonstrate that when internal auditors are exposed to the positive behavioral information of the RPT violator, the combined assertion of the RPT violator reduces the probability of reporting the RPT by internal auditors. The results underscore the significance of professional judgment and skepticism among internal auditors.
