Corporate Social Responsibility and Financial Statements Readability
In the framework of financial reporting quality, disclosure complexity is one of the most important issues to deal with. An important aspect of disclosure complexity is financial statements readability. Researches show that managers try to protect interests of stakeholders as well as interests of th...
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| Format: | Article |
| Language: | fas |
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Alzahra University
2021-06-01
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| Series: | پژوهشهای تجربی حسابداری |
| Subjects: | |
| Online Access: | https://jera.alzahra.ac.ir/article_5564_a0a3937bef77509d05fe6769fb326ebc.pdf |
| _version_ | 1828067209662955520 |
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| author | Mansour Garkaz Mohammadreza Haghdadi |
| author_facet | Mansour Garkaz Mohammadreza Haghdadi |
| author_sort | Mansour Garkaz |
| collection | DOAJ |
| description | In the framework of financial reporting quality, disclosure complexity is one of the most important issues to deal with. An important aspect of disclosure complexity is financial statements readability. Researches show that managers try to protect interests of stakeholders as well as interests of themselves by manipulating financial reporting and complicating financial statements. The purpose of this study is to examine the relation between corporate social responsibility and annual reports readability. In order to measure social responsibility, six dimensions of environmental issues, products and services, human resources, customers, social responsibilities, and energy are used, and a logarithm of total points is applied to measure social responsibility points. Also, to measure annual reports readability, the study uses the Fog index which is a combination of the words number in each sentence and the percentage of complicated terms. The research sample consists of 60 firms listed in Tehran Stock Exchange from 2012 to 2017 with 350 observation and the research hypotheses are tested using multivariate regression method. Findings indicate that there is a significant positive relation between corporate social responsibility and financial statement readability, thus, any increase of corporate social responsibility results in an increase of Fog index and decrease of financial statements readability. |
| first_indexed | 2024-04-10T23:42:47Z |
| format | Article |
| id | doaj.art-8fa980aea44d46fc9d97b752e456e060 |
| institution | Directory Open Access Journal |
| issn | 2251-8509 2538-1520 |
| language | fas |
| last_indexed | 2024-04-10T23:42:47Z |
| publishDate | 2021-06-01 |
| publisher | Alzahra University |
| record_format | Article |
| series | پژوهشهای تجربی حسابداری |
| spelling | doaj.art-8fa980aea44d46fc9d97b752e456e0602023-01-11T05:47:12ZfasAlzahra Universityپژوهشهای تجربی حسابداری2251-85092538-15202021-06-01112477010.22051/jera.2019.22923.22375564Corporate Social Responsibility and Financial Statements ReadabilityMansour Garkaz0Mohammadreza Haghdadi1Associate professor in Accounting, Azad University of Gorgan.Ph.D. Student of Accounting, Azad University of Gorgan, Gorgan, IranIn the framework of financial reporting quality, disclosure complexity is one of the most important issues to deal with. An important aspect of disclosure complexity is financial statements readability. Researches show that managers try to protect interests of stakeholders as well as interests of themselves by manipulating financial reporting and complicating financial statements. The purpose of this study is to examine the relation between corporate social responsibility and annual reports readability. In order to measure social responsibility, six dimensions of environmental issues, products and services, human resources, customers, social responsibilities, and energy are used, and a logarithm of total points is applied to measure social responsibility points. Also, to measure annual reports readability, the study uses the Fog index which is a combination of the words number in each sentence and the percentage of complicated terms. The research sample consists of 60 firms listed in Tehran Stock Exchange from 2012 to 2017 with 350 observation and the research hypotheses are tested using multivariate regression method. Findings indicate that there is a significant positive relation between corporate social responsibility and financial statement readability, thus, any increase of corporate social responsibility results in an increase of Fog index and decrease of financial statements readability.https://jera.alzahra.ac.ir/article_5564_a0a3937bef77509d05fe6769fb326ebc.pdffinancial statements readabilityfog indexcorporate social responsibilitydisclosure complexity |
| spellingShingle | Mansour Garkaz Mohammadreza Haghdadi Corporate Social Responsibility and Financial Statements Readability پژوهشهای تجربی حسابداری financial statements readability fog index corporate social responsibility disclosure complexity |
| title | Corporate Social Responsibility and Financial Statements Readability |
| title_full | Corporate Social Responsibility and Financial Statements Readability |
| title_fullStr | Corporate Social Responsibility and Financial Statements Readability |
| title_full_unstemmed | Corporate Social Responsibility and Financial Statements Readability |
| title_short | Corporate Social Responsibility and Financial Statements Readability |
| title_sort | corporate social responsibility and financial statements readability |
| topic | financial statements readability fog index corporate social responsibility disclosure complexity |
| url | https://jera.alzahra.ac.ir/article_5564_a0a3937bef77509d05fe6769fb326ebc.pdf |
| work_keys_str_mv | AT mansourgarkaz corporatesocialresponsibilityandfinancialstatementsreadability AT mohammadrezahaghdadi corporatesocialresponsibilityandfinancialstatementsreadability |