Explain a model for measuring the tone of financial statements using a multi-criteria decision model with a fuzzy approach

Document Type : Research Paper

Authors

1 PhD Student in Accounting, Islamic Azad University, Ali Abadktol Branch, Ali Abadktol, Iran

2 Assistant Professor, Department of Accounting, Islamic Azad University, Ali Abadktol Branch, Ali

3 Assistant Professor, Department of Accounting, Islamic Azad University, Ali Abadktol Branch, Ali Abadktol, Iran

4 Department of Accounting, Aliabad Katoul Branch, Islamic Azad University, Aliabad Katoul, Iran

Abstract

Despite the existence of financial reporting rules and requirements, including corporate governance, sustainability and social responsibility in companies, the complexity of financial reporting is still a controversial issue in the financial field and no comprehensive indicator has been provided so far. Although in previous studies, several indicators have been used to measure the readability of financial reporting, but in this study, by considering different indicators, using a mathematical method, a comprehensive indicator for measuring the readability of financial reporting has been presented. Also, to test and measure the efficiency of the designed model, data related to 152 companies during the years 2016 to 2019 have been used by mixed method. For this purpose, a questionnaire was prepared and distributed among experts to ask the experts about the weight and importance of the criteria for measuring the readability of the company's financial reporting. Indigenous model of financial reporting based on companies listed on the Tehran Stock Exchange was presented. Also, in order to measure the relationships of the hidden variable, which in this study is the readability of financial reporting, confirmatory factor analysis was used with its measurement items; the obtained results show that the proposed model is a good indicator for the readability of financial reporting and has less skewness than individual criteria.

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