This study investigates the impact of institutional cross-ownership on corporate social responsibility (CSR) and industry competition, while also examining the mediating role of industry competition in this relationship. Given the complex and multifaceted influence of ownership structures on firms' competitive dynamics and socially responsible behaviors, this study holds significant theoretical and practical relevance. Utilizing a sample of companies listed on the Tehran Stock Exchange over a ten-year period (2014–2023), we employ multivariate regression models to analyze the data. The findings reveal that institutional cross-ownership exerts a positive and significant effect on CSR, while also enhancing competition within the industry. Moreover, industry competition serves as a meaningful mediator, whereby heightened competitive pressures encourage firms to adopt stronger commitments to social responsibility. By offering novel empirical insights into corporate governance and market competition, this study contributes to strategic decision-making in firm management and advances the understanding of the interplay between economic performance and social accountability.Keywords: Corporate Social Responsibility, Institutional Cross-Ownership, Product Market CompetitionJLE: M41, I22, G11 IntroductionThis study investigates the impact of institutional cross-ownership on corporate social responsibility (CSR) and industry competition, with a particular focus on the mediating role of competition. In recent years, CSR reporting has gained prominence alongside financial disclosures as stakeholders increasingly demand corporate accountability beyond mere profitability (Asadi et al., 2024). While financial statements reflect a firm’s economic performance, CSR disclosures communicate its commitment to societal and environmental obligations (Hassas et al., 2019). However, the influence of institutional cross-ownership—where investors hold stakes in multiple competing firms within the same industry (He & Huang, 2017)—remains underexplored in the CSR literature. This study presents conflicting perspectives on cross-ownership’s effects: some scholars argue that it fosters anti-competitive behavior by aligning investor interests across firms, potentially leading to collusion (Azar et al., 2018; Kang et al., 2018; Kempf et al., 2016), while others contend that it enhances governance and industry competitiveness through improved oversight (Schmalz, 2018; Gao et al., 2019; Porter & Kramer, 1986). Furthermore, industry competition itself significantly shapes CSR engagement, as firms may adopt CSR initiatives to differentiate themselves and strengthen stakeholder relationships (Lau et al., 2018; Firas et al., 2023), though excessive competitive pressures could alternatively divert resources toward short-term financial goals at the expense of CSR (Kempf et al., 2016). This study aims to reconcile these divergent views by analyzing how institutional cross-ownership influences CSR, both directly and through its impact on industry competition.Methods & MaterialsThis study adopts an applied, quasi-experimental research design utilizing ex-post facto (archival) data. The data were collected from the Tehran Stock Exchange database, Rahavard Novin software, and corporate financial statements (including accompanying notes). For hypothesis testing, we employed Ordinary Least Squares (OLS) regression analysis conducted in Stata (v17) and EViews (v13), with robust standard errors to address potential heteroskedasticity. To evaluate the mediating role of industry competition in the institutional cross-ownership-CSR relationship, we implemented the Sobel test – a rigorous statistical procedure for assessing mediation effects that determines whether the indirect path through the mediator variable is statistically significant. This methodological approach ensures both the reliability of our causal inferences and the validity of our mediation analysis. FindingsOur empirical analysis reveals three key findings. First, institutional cross-ownership significantly enhances corporate social responsibility performance (P < 0.01), consistent with the monitoring hypothesis of institutional ownership. This supports governance theories emphasizing the oversight role of cross-owners (Smith & Johnson, 2020). Second, contrary to collusion concerns, we find cross-ownership reduces industry concentration (P < 0.05), suggesting it promotes competition through operational synergies and knowledge sharing - a finding aligned with Schmalz's (2018) efficiency perspective. Third, mediation analysis confirms industry competition's pivotal role (P < 0.05). The results demonstrate that competitive pressures transform cross-ownership from a passive governance mechanism into an active CSR driver, as firms strategically enhance social commitments to maintain competitive differentiation (Kang et al., 2018; Gao et al., 2019). This tripartite relationship provides novel insights into how market dynamics moderate institutional investors' influence on corporate social performance. Discussion and ConclusionThis study demonstrates that institutional cross-ownership serves as a dual mechanism for market enhancement. By leveraging their privileged access to industry-wide information, cross-owners transform competitive pressures into catalysts for improved corporate social responsibility. Our findings reveal that such ownership structures not only mitigate anti-competitive tendencies but actively promote market competitiveness through two channels: (1) by enforcing operational efficiencies, and (2) by compelling firms to adopt more sustainable practices as differentiation strategies in competitive environments. These results underscore the pivotal governance role of institutional cross-owners in simultaneously strengthening market dynamics and corporate social performance. The implications suggest that cross-ownership structures may represent an underutilized policy tool for aligning competitive markets with sustainable development goals.

Introduction: This study focuses on examining ethical commitment to financial reporting transparency and its role in the process determining the type of audit opinion. In this regard, the effect of the CEO’s succession origin (internal vs. external) on the type of audit opinion is investigated, and it is explained how ethical commitment to reporting transparency can mediate this relationship. The importance of the topic lies in the fact that the origin of a CEO’s appointment can influence their ethical attitudes toward financial reporting and, consequently, affect auditors’ perceptions of the risk of material misstatement. Material and Methods: This is an applied study conducted using a descriptive–correlational approach. The statistical population includes all companies listed on the Tehran Stock Exchange. After applying screening criteria, 138 companies were selected as the sample over the period 2010–2023 (1389–1402). Raw data were collected through data extraction from the Tehran Stock Exchange Organization database, Rahavard Novin software, companies’ financial statements, accompanying notes, the board of directors’ activity reports, and independent auditors’ reports. Data analysis was performed using multivariate regressions (logistic and ordinary least squares), while controlling for year and industry fixed effects. Results: The results indicate that an internally appointed CEO increases the likelihood of receiving an unmodified audit opinion. In addition, internally sourced CEOs exhibit a higher ethical commitment to financial reporting transparency than externally sourced CEOs. Mediation analysis further shows that ethical commitment to financial reporting transparency mediates the relationship between CEO origin and the type of audit opinion; that is, an internal origin, by strengthening ethical reporting behaviors, reduces the auditor’s perceived risk and lowers the probability of issuing a modified audit opinion. Conclusion: For the first time in the Iranian institutional context, this study examines the effect of CEO origin on the type of audit opinion through the lens of ethical reporting behaviors. The findings demonstrate that the ethical dimensions of CEO performance play a fundamental role in shaping auditors’ judgments and financial reporting outcomes.

Objective The primary challenges of the 21st century, particularly resource scarcity and the efficient utilization of resources, have intensified global awareness of sustainability and its implications for sustainable development. Achieving sustainable development requires businesses to adopt strategies that integrate economic objectives with environmental and social dimensions. As critical pillars of society, companies significantly influence sustainable development initiatives; their collaboration is essential for meaningful progress. The implementation of sustainability initiatives serves as a precursor to the disclosure of sustainability information, enabling companies to reap the advantages of both implementation and disclosure processes. Therefore, this study aims to investigate the influence of material sustainability information disclosure on company performance, while also considering the moderating effect of business strategy. Methods This research adopts a descriptive-correlational approach with a focus on practical application. A library method was utilized to gather relevant information and establish theoretical foundations. Financial data were extracted using document mining techniques applied to audited financial statements, while sustainability information was obtained through content analysis and mapping from the companies' board of directors or sustainability reports. The statistical population comprises 102 companies listed on the Tehran Stock Exchange from 2018 to 2022. Results The findings indicate a strong and significant positive relationship between the transparency of material sustainability information disclosure and company performance. Furthermore, business strategy plays a moderating role in this relationship, strengthening the positive connection between sustainability disclosure and performance outcomes. Conclusion The manager's goal is to increase shareholder wealth. In addition to traditional financial investments, the manager can also make a new type of investment called investment in sustainable activities. That's why investors with a longer horizon prefer companies with a higher environmental, social, and governance (ESG) performance, while short-term investors prefer the opposite. The analysis demonstrates that companies engaging in extensive material sustainability information disclosure achieve superior performance and value compared to those with limited disclosures. By fostering transparency in their sustainability efforts, companies enhance their competitive advantage, leading to improved performance and increased value. Additionally, business strategy emerges as a crucial moderating factor in the relationship between material sustainability information disclosure and overall company performance. Firms that align their reporting of sustainability information with their operational strategies tend to outperform their peers. Notably, according to the Miles and Snow model, which categorizes business strategies as either defensive or offensive, the results suggest that companies employing aggressive strategies are more inclined to disclose material sustainability information than those with defensive strategies. It is also recommended that investors consider non-financial disclosures (sustainability) to evaluate the performance of the company, in addition to paying attention to financial disclosures, so that optimal investment is made, and resources are not wasted. This research contributes novel insights into the relationship between material sustainability information disclosure and firm performance, emphasizing the moderating influence of business strategy, particularly within the context of emerging markets—an area that warrants further exploration.

External transparency extends beyond the quality of internal disclosures, which are primarily governed by laws and regulations. This dimension of transparency encompasses external requirements and pressures that compel managers to adhere to higher standards of information disclosure. This study examines the impact of external transparency on corporate social responsibility (CSR) performance and disclosure. This study analyzes data from 105 companies listed on the Tehran Stock Exchange between 2013 and 2022, using EViews and Stata software. The findings reveal that heightened external transparency enhances both CSR performance and disclosure. External transparency pressures foster greater corporate transparency, thereby improving CSR disclosures. Additionally, increased transparency mitigates information asymmetry and agency problems, aligning managerial objectives with corporate goals and ultimately enhancing CSR performance. This study contributes to the literature by demonstrating that external transparency serves as a robust predictor of CSR activities. Moreover, it highlights the role of external transparency in encouraging managers to produce more comprehensive CSR reports. The research also uncovers policy implications, illustrating how external transparency pressures drive firms toward greater social responsibility.Keywords: External Transparency, External Pressures, Performance of Social Responsibility, Disclosure of Social ResponsibilityJEL Classification: D25, D53, M41 IntroductionAlthough prior research has made significant progress in exploring the relationship between transparency and social responsibility, gaps remain in understanding how information asymmetry affects CSR performance. Existing literature presents mixed findings regarding transparency’s impact on CSR. Some studies suggest that transparency may reduce CSR investments due to short-term performance pressures (Aguinis & Glavas, 2012; Margolis & Walsh, 2003; Orlitzky et al., 2017), as noted by Fiesler (2011). Conversely, other research indicates that increased transparency may enhance CSR investments by attracting more analysts and bolstering corporate reputation (Luo et al., 2015; Gao et al., 2016). Studies also suggest that external pressures may incentivize firms to prioritize CSR activities to align with societal expectations (Garcia Sanchez et al., 2021). However, the literature remains inconclusive on whether transparency increases or decreases CSR investments.Prior research has predominantly examined transparency from an analyst’s perspective, whereas external stakeholder pressures compel managers to meet shareholder expectations and ensure financial performance (Pondville et al., 2013; Rowley & Berman, 2000). Anderson et al. (2009) categorize transparency into internal (disclosure quality) and external (market scrutiny), with the latter necessitating clearer information disclosure. External transparency, driven by external pressures, may influence CSR performance and disclosures—a relationship this study seeks to explore (Bushman & Smith, 2003).Methods & MaterialsThe data for this study were collected from multiple sources, including the Tehran Stock Exchange database, the Tehran Stock Exchange Technology Management Company, and the Tehran Stock Exchange Library, which provided variables related to external transparency, bid-ask spread, and trading volume. Additional data for control variables were extracted from Rahavard Novin software, financial statements, and company notes, while the Board of Directors’ activity reports to the General Assembly of Shareholders supplied information on CSR and corporate governance quality.The sample comprises companies listed on the Tehran Stock Exchange from 2013 to 2022. Applying specific selection criteria, a sample of 105 firms was selected, yielding 1,050 firm-year observations. Preliminary data processing was conducted in Excel, while final analyses were performed using EViews (version 13) and Stata (version 17). FindingsRegression model estimations indicate a positive and significant relationship between external transparency and both CSR performance and disclosure. The first hypothesis, examining the effect of external transparency on CSR performance, was confirmed, suggesting that increased transparency enhances CSR performance. The second hypothesis, tested via logistic regression, also confirmed a positive and significant association between external transparency and CSR disclosure, indicating that greater transparency leads to more robust CSR disclosures.Existing literature suggests that external stakeholder pressures for transparency help bridge the gap between disclosed and actual performance, preventing misleading CSR reporting (Anderson et al., 2009). Market expectations and oversight compel firms to present information more clearly (Leuz, 2000). Such monitoring pressures encourage firms to make more informed CSR decisions and better assess risks (Bushman et al., 2004). External transparency surpasses internal disclosure quality, which is often legally mandated, by incorporating external pressures that push managers toward higher disclosure standards (Bushman & Smith, 2003). As transparency pressures intensify, firms shift focus toward long-term performance, whereas reduced pressures may lead to short-termism rooted in agency theory. Discussion and ConclusionThe findings align with prior research, demonstrating that external transparency positively influences CSR disclosure and performance. These results suggest that external pressures for transparency foster a more transparent informational environment, thereby improving CSR disclosures. Additionally, heightened transparency reduces information asymmetry and agency conflicts, aligning managerial and corporate objectives, which in turn enhances CSR performance.In Iran’s current economic climate—marked by sanctions and currency fluctuations—firms face elevated CSR-related risks. External transparency can serve as a critical tool in mitigating information asymmetry in financial markets, enabling firms to strengthen their market position through improved disclosure practices.

Considering the importance of accounting information quality, this study aims to investigate the moderating role of the probability of earnings manipulation on the relationship between financing constraints and accounting information quality. To test the research hypotheses, a sample of 115 companies listed on the Tehran Stock Exchange between 2017 and 2023 was selected, and the hypotheses were examined using multiple regression and panel data. The findings indicate a negative and significant effect of financing constraints on the quality of accounting information. It was also found that the probability of earnings manipulation weakens this relationship. This result reflects the fact that when a company faces financing constraints, it may find incentives to manage its financial statements due to financial pressures and the need to secure new resources. In such conditions, where the probability of profit manipulation increases, the scope for fraudulent actions also increases. The results of this study can affect the efficiency and effectiveness of decisions made by investors and creditors in the capital market to assess the credit risk of business entities and can help supervisory and standard-setting institutions review the laws and standards affecting the reporting and disclosure process in companies with financing constraints and suspected earnings manipulation. Furthermore, auditors, aware of the inherent risks of such companies, should reconsider developing effective audit methods. Introduction In today's modern society, economists can do almost nothing without information. Improving the quality and usefulness of accounting data has become more critical as a result of recent global financial crises. Financing constraints may lead a business entity to focus on securing financing rather than providing quality financial information. These restrictions not only affect the economic performance of companies but also lead to a decrease in the accuracy and transparency of financial reporting, increased earnings management to present a better picture of the company's financial position, increased information asymmetry, an inability to implement appropriate dividend policies, and an increased cost of capital. This demonstrates the need to make appropriate decisions in the field of financing and resource management to maintain the quality of accounting information. Earnings manipulation, as a risk-based management behavior, undermines the existential philosophy of financial statements and reduces investors' trust in the financial reporting process. Theoretically, according to agency theory, managers manipulate earnings due to conflicts of interest between themselves and stakeholders, and according to prospect theory, managers' psychological preferences, such as loss aversion, can motivate earnings manipulation. Awareness of the causes of earnings management provides the possibility of reducing it. The numerous cases of accounting fraud observed in recent years lead us to a more precise understanding of the developments governing the accounting industry and the need to reform and develop relevant laws and regulations. In the real world, research is needed to provide evidence to support this theory. Outside Iran, some empirical evidence confirms this theory. For example, Tang (2023) showed that financing constraints undermine the relevance, reliability, and prudence of accounting information. Also, Ebrahimi et al. (2017) showed that financial crisis has a negative and significant effect on earnings smoothing, earnings value correlation, and conditional conservatism. However, to date, none of the researchers have examined the reduction in accounting information quality through financing constraints and the probability of earnings manipulation. Our review found no study that has investigated this issue in Iran, so the current research attempts to answer the question: What effect does the probability of earnings manipulation have on the relationship between financing constraints and accounting information quality? The results of this study, in addition to helping identify companies with financing constraints and suspected earnings manipulation, can affect the efficiency and effectiveness of decisions made by investors and creditors in the capital market to assess the credit risk of business entities and can help supervisory and standard-setting institutions review the laws and standards affecting the reporting and disclosure process in companies with financing constraints and suspected earnings manipulation. Furthermore, auditors, aware of the inherent risks of such companies, should reconsider developing effective audit methods. In addition, the results of the study are expected to help managers of economic units improve the quality of financial reporting by considering the effects of financing constraints and the probability of earnings manipulation. Methodology This research is considered applied in terms of purpose and descriptive-correlational in nature. The data were collected through the database of the Tehran Stock Exchange Organization (Codal). The required data were gathered using the systematic elimination method. The statistical sample of this research consists of 115 companies listed on the Tehran Stock Exchange. The data were then examined using multiple regression and panel data techniques. The quality of accounting information is the dependent variable, and the accruals quality index based on the model presented by Francis et al. (2005) was used to measure it. Financing constraints are the independent variable, and the KZ (1997) index was used to measure them. The probability of earnings manipulation is the moderating variable. To measure this variable, the Beneish (1999) and modified Beneish (1999) models were used. Findings The findings indicate a negative and significant effect of financing constraints on the quality of accounting information. As financing constraints increase, the quality of accounting information decreases. It was also found that the probability of earnings manipulation weakens this relationship. Conclusion The findings of our research provide empirical evidence supporting the theory that as financing constraints increase, the quality of accruals and earnings reported by firms declines. Financially constrained companies have higher discretionary accruals before making investments than companies without financing constraints, which indicates greater earnings management in these companies. Therefore, financing constraints play a significant role in determining managers' financial reporting behavior. One possible reason for the existence of a significant relationship between financing constraints and information quality could be the attention of major providers of corporate finance (especially state-owned banks) to the quality of corporate disclosure of information about financing decisions. These results are consistent with the findings of Hope et al. (2009), Beaty et al. (2010), Ding et al. (2016), Armstrong et al. (2019), Lei et al. (2022), Tang (2023), Shuli (2011), Trombetta and Imperatore (2014), and Setayesh et al. (2013). The results show that as the probability of earnings manipulation increases, information asymmetry between insiders and outsiders increases, which leads to a decrease in the quality of accounting information and an increase in financing constraints. Managers have a greater incentive to manipulate earnings in years when their financial situation is poor and there are signs of a trend toward financial crisis, to hide the company's poor performance. Based on the results of this research and the importance of financial information quality, auditors are advised to further investigate the probability of earnings manipulation and its effect on the quality of financial information.

This study investigates the impact of outsiders’ demand for more information (or transparency) on corporate social responsibility (CSR) initiatives. Drawing on a dataset of U.S. companies from 2010 to 2023, CSR performance is measured using ASSET4 ratings, while CSR disclosure levels are captured through the number of words and sentences in reports. Utilizing within-industry and -firm OLS regressions, our analyses reveal a positive relationship between the demand for more information and future CSR investments, showing that firms with higher demand for information not only enhance their CSR performance but also expand the length of their CSR reports. These results suggest that increased pressures for information encourage organizations to engage more deeply with social responsibility, resulting in more robust CSR activities and more comprehensive reporting practices. This study contributes to the existing literature by highlighting the strong predictive role of outsiders’ demand for more information in promoting CSR investment and disclosure, and by offering important insights for policymakers and practitioners on fostering corporate responsibility through enhanced transparency.

Objective Drawing upon motivation theory and human resource theory, this study suggests that a high-quality workforce not only fulfills its responsibilities effectively but is also incentivized by the benefits provided by companies to such employees. The distinctive characteristics of a high-quality workforce contribute to the enhancement of corporate reporting by improving internal controls, strengthening corporate governance, and ensuring more transparent and accurate financial disclosures. Recent studies validate these assertions, establishing a relationship between workforce quality and the quality of financial reporting. Moreover, board members can play an indirect role in enhancing workforce quality by selecting and recruiting employees with desirable traits. Within this context, the present research aims to investigate the mediating effect of workforce quality on the relationship between board characteristics and financial reporting quality. Methods This applied research adopts a descriptive-correlational approach to examine the relationships between the variables. The statistical sample, filtered based on specific criteria and constraints, consists of 105 companies listed on the Tehran Stock Exchange from 2013 to 2022. The hypotheses were tested using multivariate regression models. Results The analysis of the first three hypotheses reveals that board characteristics, specifically independence and gender diversity, have a significant positive effect on financial reporting quality. In contrast, board size exhibits a significant negative impact on financial reporting quality. The findings from the fourth to sixth hypotheses confirm that board characteristics such as independence, size, and gender diversity positively influence workforce quality. Furthermore, the results from the seventh to ninth hypotheses establish that workforce quality mediates the relationship between board independence, size, and gender diversity, and financial reporting quality. In particular, workforce quality fully mediates the relationship between board size and financial reporting quality, while it partially mediates the relationships involving board independence and gender diversity. Robustness testing further validated these results. Conclusion The research findings underscore the significant role of board characteristics, i.e., independence, size, and gender diversity, in enhancing workforce quality and improving financial reporting quality. A high-quality workforce mitigates the adverse effects of board size on financial reporting quality and positively influences corporate reporting. Consequently, the study emphasizes the importance of fostering a high-quality workforce, encouraging companies to prioritize workforce development and employee well-being. These findings highlight that workforce quality not only improves financial reporting but also promotes corporate growth and generates broader societal benefits by enhancing organizational focus on employee quality.

This study investigated how Tehran Stock Exchange (TSE) firms made cash holdings decisions when their stocks were mispriced in the market. The research also examined the mediating role of cash flow statement indicators in the relationship between stock mispricing and corporate cash holdings. The dataset comprised information from 106 companies listed on the TSE over an 11-year period from 2012 to 2022. The analysis was conducted using EViews and Stata software. The results of the first hypothesis test showed that stock mispricing had a positive and significant effect on a company's propensity to hold cash. The statistical models for the second and third hypotheses confirmed the mediating effects of cash flow statement indicators in the relationship between share mispricing and corporate cash holdings. However, further analysis revealed that the effects of mispricing were primarily transmitted through the channel of financing activities on a company's cash holdings decisions. The findings suggested that the firms tended to maintain higher cash reserves when their stocks were mispriced, so they could utilize these funds for investment or other purposes as needed. This underscored the importance of cash flow information in understanding how firms managed their cash holdings in response to share mispricing. The study provided insights for both corporate managers and investors regarding the drivers of corporate cash policies.Keywords: Cash Holding, Mispricing, Cash Flow, Financing.JLE: D25, D53, M41 IntroductionCorporate cash flows are a critical factor in business decision-making and financial evaluations (Mashayekh & Razani, 2021). In imperfect markets, stock mispricing can encourage firms to hold higher cash reserves to manage volatile conditions and reduce risk. Firms may maintain cash for various reasons, such as avoiding cash shortages, benefiting from tax incentives, exercising managerial discretion, and addressing agency issues (DeAngelo et al., 2010; Faulkender et al., 2019; Foroughi & Farzadi, 2014; Nanda & Vadilyev, 2023). Stock mispricing can present both opportunities and challenges, potentially leading to fluctuations in a company's cash and investment levels. From a theoretical perspective, stock mispricing can affect a firm's financial and investment decisions, prompting managers to adjust cash holdings based on the perceived misevaluation of the company's stocks. Drawing on reception theory and market timing theory, the effects of stock mispricing are primarily transmitted through a firm's financing and investment activities, which then shape its cash reserve decisions (Polk & Sapienza, 2009; Chen et al., 2021). This study investigated whether stock mispricing influenced a firm's willingness to hold cash and the specific channels, through which this effect occurred. The key research questions were: Do companies tend to increase their cash holdings in response to stock mispricing? If so, how does mispricing primarily shape a firm's desire to maintain cash reserves? Based on the theoretical foundations, the study focused on net cash flows from investment and financing activities as the potential channels, through which the effects of stock mispricing might be transmitted to the firm's cash holdings decisions.Materials & MethodsThe data pertaining to the study's variables were collected from the Tehran Stock Exchange (TSE) and Securities Exchange Organization (SEO) databases, the Rahvard Navin software, and the financial statements of the companies. The research period spanned an 11-year timeframe, covering the financial statements from 2013 to 2022. The statistical sample comprised 106 companies, representing a total of 1,166 observations. The data analysis was conducted using EViews and Stata software. By adopting a quantitative approach and leveraging post-event observations, the study ensured that the variables could not be manipulated, enhancing the reliability and validity of the findings. The use of established databases and financial statements as data sources further strengthened the credibility of the research. The analysis powered by well-regarded statistical software enabled a rigorous examination of the research hypotheses. FindingsThe analysis results of the first hypothesis indicated that stock mispricing had a positive and significant effect on a company's willingness to hold cash. This suggested that when a firm's stock value was higher than its intrinsic worth, the company tended to seize the opportunity to increase its cash reserves. The Sobel test results for the second hypothesis revealed that net cash from financing activities had a mediating effect on the relationship between mispricing and the company's desire to maintain cash. The regression analysis for the second hypothesis, in line with market timing theory, demonstrated that mispricing positively and significantly impacted net cash from financing activities. Moreover, when the mediating variable of net cash from financing activities was included in the relationship between mispricing and the company's cash holdings, the coefficient of the independent variable (mispricing) decreased slightly compared to its direct effect in the first hypothesis, but remained significant. This evidence supported the notion that, in accordance with market timing theory, companies leveraged the financing opportunities created by mispricing and tended to save and retain cash for their expenditures. The Sobel test results for the third hypothesis also aligned with the theoretical foundations, indicating that net cash from investment activities had a mediating effect on the relationship between mispricing and the company's desire to hold cash. The findings further showed that mispricing had a negative and significant impact on net cash from investment activities. This was consistent with the theoretical underpinnings and suggested that when a company's stock price was higher than its intrinsic value, the firm tended to increase its capital expenditures, leading to a negative net cash flow from investment activities. Conversely, when the stock value was lower than its real value, companies might reduce their capital expenditures, preventing cash outflows through investment activities. In some cases, the firms whose shares were priced lower than their intrinsic values might be forced to sell their capital assets due to financial difficulties and this could explain the observed negative impact. In summary, findings indicated that stock mispricing could significantly influence a company's willingness to maintain cash reserves, with the effects being primarily transmitted through the firm's financing and investment activities. Discussion & ConclusionA comparison of the Sobel test statistics for the second and third hypotheses, which were 2.504 and 2.137, respectively, indicated that the effects of stock mispricing were more pronounced through the channel of financing activities. This suggested that the company's desire to maintain cash reserves was primarily channeled through financing activities. This result highlighted the precautionary motives of the companies. The results demonstrated that these firms had paid greater attention to their financing activities and less emphasis on investment activities when their stock prices were mispriced. In other words, companies tended to accumulate cash reserves under mispricing conditions so that they could subsequently utilize these saved funds for investment or other purposes as needed. This behavior could be interpreted as a strategic response by the firms to the market timing opportunities created by stock mispricing. When a company's shares were overvalued, the firm was inclined to exploit the favorable financing conditions by increasing its cash holdings. Conversely, when the stock was undervalued, the company might scale back its investment activities to preserve cash. The mediating role of net cash from financing and investment activities in the relationship between mispricing and the firm's cash holdings further underscored the importance of these channels in the overall cash management strategy of the organizations. Companies appeared to be actively managing their cash flows and capital expenditures to capitalize on the market timing opportunities presented by stock mispricing. In conclusion, this study provided empirical evidence that stock mispricing significantly influences a company's willingness to maintain cash reserves, with the effects primarily channeled through the firm's financing and investment activities. These findings contribute to the understanding of how companies navigate the complex dynamics of stock valuation and cash management in their strategic decision-making.

Objective There are two distinct perspectives regarding the impact of real earnings smoothing on labor investment efficiency through its effect on information asymmetry. On one hand, based on signaling theory, real earnings smoothing can reduce information asymmetry and enhance labor investment efficiency. On the other hand, the opportunistic managerial view highlights the opposite effect. Given this context, the present study aims to investigate the impact of real earnings smoothing on labor investment efficiency, with information asymmetry acting as a mediating variable. Methods This study falls under the category of applied research due to the applicability of its findings in the decision-making process. The data utilized in this research were collected based on past real information, making it an ex-post-facto study. Additionally, this research is descriptive-correlational in nature, with the primary objective being the examination of relationships between the research variables. To this end, considering the conditions and constraints imposed on the research population, a sample of 106 companies listed on the Tehran Stock Exchange was selected, and the hypotheses were tested using multivariate regression models. Results The results indicate that an increase in the level of real earnings smoothing leads to improved labor investment efficiency. Furthermore, information asymmetry mediates the relationship between real earnings smoothing and labor investment efficiency, where real earnings smoothing, by reducing information asymmetry, contributes to greater efficiency in labor investment. Conclusion Based on the findings, it can be concluded that company managers use real earnings smoothing to convey hidden information. This information reflects the company's future outlook, which, through consistent earnings smoothing over the years, presents a clear and positive projection of the company's future to investors and creditors. This supports the view that smoothed earnings are indicative of a bright future for the company, as these earnings are perceived by investors and creditors as sustainable. In fact, by using signaling tools, managers reduce market information asymmetry regarding the company’s stock price, enabling the company to secure the necessary financial resources for labor investment and make efficient decisions. Therefore, based on the signaling theory of private information, it can be concluded that real earnings smoothing conveys managers' private information regarding the company's future revenues, thereby reducing the information asymmetry between companies and external capital providers, ultimately leading to greater labor investment efficiency. This research contributes to the growing body of literature on real earnings smoothing and labor investment efficiency, highlighting the importance and positive impact of real earnings smoothing, while also emphasizing the need for further investigations due to the lack of understanding regarding managerial motivations behind real earnings smoothing.

Purpose This paper aims to investigate how integrated reporting quality (IRQ), as well as comprehensive disclosure score (CDS) (i.e. incorporating integrated and sustainable reporting quality), impacts value creation differently between companies operating under mandatory versus voluntary adoption of these reporting frameworks. Design/methodology/approach The sample comprises 1,195 firm-year observations (international data set) from 2018 to 2022, which are divided into groups based on mandatory vs voluntary adoption of the international integrated reporting framework (IIRF) and Sustainability Accounting Standards Board (SASB). Furthermore, regression analysis is used in the analyses. Findings The findings revealed a significant and positive relationship between IRQ and value creation on a global scale. In addition, unlike voluntary adoption of the IIRF, mandatory adoption of it showed a significant and positive relationship between IRQ and value creation. Furthermore, an increase in the CDS had a greater impact on value creation compared to IRQ. Finally, in contrast to companies with voluntary adoption of both IIRF and SASB, companies with mandatory adoption of them exhibited a significant and positive relationship between these reports and value creation. Practical implications The findings have practical implications for various stakeholders. First, by enhancing the awareness and understanding of integrated reporting and sustainability reporting among users, these results can facilitate more informed economic decision-making and enable a more accurate assessment of a company's potential for value creation. Second, these findings can contribute to the development of more effective and tailored reporting guidelines that align with the nuances of value creation dynamics in different contexts. Ultimately, this research can lead to improvements in reporting practices and regulatory frameworks, benefiting both companies and their stakeholders. Social implications The study's social implications are significant as it offers insights into the global debate surrounding the adoption of the IIRF and the objectives of the merger involving the Value Reporting Foundation and the International Financial Reporting Standards Foundation. The findings provide a concrete basis for evaluating the value of adopting the IIRF and inform discussions on the future of reporting standards and practices. Originality/value Furthermore, it stands as one of the pioneering endeavors to investigate the value creation aspects of CDS. These unique aspects make a substantive contribution by expanding the frontiers of knowledge in the realm of corporate reporting and financial implications, offering novel insights and opportunities for further research in this crucial domain.

The Effect of Total Labor Cost on the Financial and Non-Financial Reporting Quality based on Motivation Theory

This study aimed to examine the financial health of the corporate governance-bank efficiency relationship. The statistical population encompasses all commercial, non-commercial, and specialised banks during 2011-2019. Since its statistical value is low, the sample size equals the statistical population. According to previous studies and various sources, the efficiency of banks was calculated using a nonparametric data envelopment analysis (DEA) method. Corporate governance was computed using the associated dummy variables. The index of financial health determinants was also estimated using the CAMELS system and ranked by Technique For Order Preference By Similarity To Ideal Solution (TOPSIS) method. Findings showed that corporate governance has a significant effect on the efficiency of banks and the financial health of banks. In addition, financial health has a significant effect on the efficiency of banks. Since the study's first hypothesis was not rejected, financial health with an incomplete mediating role significantly affected the relationship between corporate governance and bank efficiency.

A sales decline period disrupts the time series of earnings and, consequently, reduces their predictability. Such a situation can lead to inappropriate decisions by investors. Therefore, managers need to respond appropriately to negative news resulting from sales decline. Manager response is related to forecasting future sales situations, which could affect risk to the firm. Accordingly, the purpose of this study is to investigate the effect of managers' forecasts of future sales on the risk of companies that have experienced sales decline. In this study, the ratio of the changes in operating profit margin was used to compare companies with optimistic and pessimistic managers. To investigate the research hypotheses, the Fama-French five-factor model was used to depict a period of 11 years, from 2007 to 2017, for the companies that are accepted in the Tehran Stock Exchange. It should be noted that the market beta of the Fama-French five-factor model is distinguished by upside potential and downside risk factors, making it possible to study them individually. The findings imply that in companies with optimistic managers, the upside potential is more than the downside risk, but in companies with pessimistic managers, there is no significant difference between the upside potential and the downside risk.

Objective: This study is implemented to identify the factors affecting favorable financial reporting and also to investigate the impact of business and stock market cycles on the behavior of these factors. Methods: The panel data model was used to test the assumptions of the research and the ratio of the sum of the absolute value of the effects of audit disagreement paragraphs over the absolute value of the net income was used to measure favorable financial reporting. The statistical sample of this research, after applying some restrictions, consists of 124 firms listed on the Tehran Stock Exchange from 2008 to 2017. Results: Research’s findings demonstrated that profitability and corporate governance quality are positively associated with favorable financial reporting; while managerial ability, audit size and firm age are not significantly associated with favorable financial reporting. The results of the Hodrick-Prescott filter showed there is no complete coincidence between boom and recession periods of business and stock market cycles during the research period. In the supplementary analysis of the research, based on the Paternoster test (1998) about the behavior of the above factors in the periods of the business and stock market cycles, audit size variable behavior influenced by the boom and recession periods of the business cycle and behavior of the profitability variable is influenced by the boom and recession periods of the stock market cycle. Conclusion: The results of this study emphasize the role and importance of establishing a high-quality corporate governance system in the company and supervise the organizations concerned about its requirements. Also, in this research, favorable financial reporting is measured from an independent audit view especially based on audit standard No. 700. Lack of relationship between some factors and favorable financial reporting, which is predicted as a reflection of the high level of quality in financial reporting, on one hand, and the lack of accordance of research results with some researches results, on the other hand, may result from the lack of full compatibility of two concepts of favorable financial reporting and financial reporting quality or difference in stated variable measurement.

This study aims to investigate the impact of deviation from optimal level of cash holdings on adverse selection and moral hazard problems. The data set includes 106 listed firms of Tehran Stock Exchange during the period of 2005-2016 and both panel data and cross-sectional data multivariate regressions were utilized in different stage of analysis to test the hypotheses. According to the optimal level of cash holdings, firms were divided into two groups of firms with or without excess cash holdings. The results of the study revealed that lower optimal level of cash holdings increases adverse selection. In addition, higher optimal level of cash holdings leads to moral hazard In other words, the findings confirmed both pecking order and free cash flow theories. The findings imply that there is a positive relationship between information asymmetry and marginal value of cash holdings. Such a relationship will gradually decrease when the firms hold higher than optimal level of cash and translate into a negative one.

Objective: Due to the different levels of corporate governance quality in different companies, it is expected that the quality of external and internal corporate governance in different companies will have a different effect on the reduction of agency problems and information asymmetry. This research investigates the role of corporate governance quality on the relationship between cash holdings and firm values when information asymmetry exists. Methods: In this research, the quality of corporate governance has been measured from both internal and external dimensions. Also, to measure information asymmetry, that has a moderator role, three different criteria have been used. The data set includes 106 listed companies of the Tehran stock Exchange within the period 2007 to 2016. Multiple regression models are utilized to test the hypothesis. Results: In the presence of information asymmetry, the higher (lower) quality of corporate governance would have a significant and positive (negative) effect on the relationship between cash holdings and firm values. These results were confirmed not only by considering the separated internal and external dimensions of corporate governance but also by integrating both dimensions. Conclusion: In the presence of information asymmetry, strong corporate governance mechanisms will prevent the agency costs and firm value will increase

Decisions and thoughts of managers of organizations have a crucial role in advancing organizational goals. So identify their personal characteristics that influence their decisions and can be the reason for incompetence and managerial inadequacies in different levels of management and leadership of the organizations is important.Corporate owners use corporate governance mechanisms to reduce the opportunistic behavior of managers and protect the rights of stakeholders. In this regard, the present study aims to investigate the type and direction of the effect of management behavioral aspects on stakeholder management. also, the role of moderating the quality of corporate governance in this regard has been studied. To achieve the objective of the research, a sample of 96 companies listed on the Tehran Stock Exchange over a period of ten years (from 2010 to 2019 ) was used. The statistical results of the research hypotheses indicate that among the behavioral aspects studied in this study, manager's myopic has a negative and significant effect on stakeholder management. But manager's overconfidence and narcissism do not have a significant effect on stakeholder management. The results also showed the quality of corporate governance has no significant effect on the relationship between management behavioral aspects and stakeholder management.

The aim of this research was to determine the impact of voluntary information disclosure on informational content of share price. In this regard, future earnings response coefficient was used to determine the informational content of the share price about the future income information. Furthermore, share price synchronicity was used to evaluate the informational content of the share price about firm-specific information. To this end, it was attempted to select 98 firms listed in Tehran Stock Exchange (from 2005 to 2016). The analyses indicated that the voluntary information disclosure improved the informational content of share prices in terms of the future earnings. However, it was indicated that the voluntary information disclosure did not affect the informational content of share price in terms of firm-specific information. So, voluntary information disclosure increases the capability of the investors to predict the future income and, consequently, future income information will be reflected in the share price.

The present study investigates the mediating effect of the dividend policy on the relationship between corporate governance quality and informative income smoothing. Tucker and Zarowin (TZ) and Albrecht and Richardson (AR) approaches are utilized as the proxies of informative income smoothing. In addition, the accumulated coding method and dividend are applied to measure the corporate governance quality and dividend policy respectively. By applying a systematic elimination method, 109 firms remained as the final sample for the period from 2007 to 2014. Using the TZ method, we found that there is a significant and positive relationship between corporate governance quality and informative income smoothing. Finally, according to the results of Sobel’s Test, the role of dividend policy as a mediating variable was not verified in the relationship between corporate governance quality and informative corporate governance (TZ); however, if the AR method is used for measuring informative income smoothing, the dividend policy may mediate the relationship between corporate governance quality and informative income smoothing.