The role of information behavior in financial reporting (With an emphasis on information entropy theory)

Document Type : Research Paper

Authors

Department of Accounting, Bonab Branch, Islamic Azad University, Bonab, Iran

10.22075/ijnaa.2022.28778.3985

Abstract

In financial markets, according to the mechanism of information exchange between sender and receiver (user of information), the knowledge and awareness of the receiver are always limited to the amount of information sent by the sender. Therefore, in this research, an attempt has been made to design the model of information entropy in the financial reporting of companies by the method of grounded theory. This research is qualitative and exploratory. This research was carried out by interviewing experts in the field of theoretical foundations of behavioral and psychological financial theories and the field of the capital market, and it reached saturation by conducting 14 interviews in 2021 using the snowball sampling method. The findings of this research showed that for the model of financial reporting with the role of information behavior, strategies such as establishing a financial reporting committee with the role of information behavior and training the category of financial reporting with the role of information behavior are adopted. Finally, the coherent model showed that financial reporting with the role of information behavior leads to consequences such as increasing social trust and confidence, growth and development of the company, and increasing the quality of financial information.

Keywords


Articles in Press, Corrected Proof
Available Online from 12 May 2023
  • Receive Date: 11 July 2022
  • Revise Date: 22 October 2022
  • Accept Date: 29 October 2022