Identifying and Ranking Effective Financial Statements Quality Indexes Using Analytic Network Process
Quarterly Journal of Securities Exchange

Quarterly Journal of Securities Exchange

Identifying and Ranking Effective Financial Statements Quality Indexes Using Analytic Network Process

Document Type : Original Article

Authors
Ghasem Bolo 1
Jafar Babajani 2
Maghsoud amiri 3
Iraj Davanipour 4
1 Accounting - Management and Accounting - Allameh Tabataba’i University- Tehran - Iran
2 Accounting - Management and Accounting - Allameh Tabataba’i University - Tehran - Iran
3 Industrial Management,Management and Accounting ,Allameh Tabataba’i University - tehran - iran
4 Accounting - Accounting and Management - Allameh Tabataba’i University- Tehran - Iran
10.22034/jse.2020.11071.1325
Abstract
The aim of this survey is identifying effective indexes of financial statements quality for companies listed in Tehran Exchange and also ranking those indexes. To achieve this aim, firstly by studying research literature review and theoretical background and also expert interview, a collection of indexes related to quality of financial statements were identified and then by use of questionnaire and performing Fuzzy Delphi method we have identified those quality indexes which have expert consensus about their effect on quality of financial statements. After that by using confirmatory factor analysis, we recognize those indexes which have significant effect on quality of financial statements. Lastly by use of analytic network process we have measured the relative weight of each of those indexes about their effect on quality of financial statements.
Results show that “predictability value”, “value-relevance of earning” and “earning consistency” as indexes related to “relevance” component and “conservatism”, “accruals quality”, “earning smoothness”, “closeness of earning to cash” and “unbiasedness” as indexes related to “faithful representation” component are significant effective financial reporting quality indexes. Results of analytic network process show that “predictability value” and “accruals quality” respectively with weight of 29% and 17% have the greatest effect on the quality of financial statements and other indexes are on the next priorities.
Keywords
Financial Statements Quality
Financial Statements Quality Indexes
Ranking Financial Statements Quality Indexes
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Quarterly Journal of Securities Exchange
Volume 12, Issue 48
Winter 2020
Pages 144-167