The reporting quality of investee companies and the performance of mutual funds
Quarterly Journal of Securities Exchange

Quarterly Journal of Securities Exchange

The reporting quality of investee companies and the performance of mutual funds

Document Type : Original Article

Authors
hamideh asnaashari 1
mohammad hossein safarzadeh 2
Reyhaneh Keikhah Akhar 3
1 Assistant Professor, Department of Accounting, Faculty of Management and Accounting, Shahid Beheshti University, Tehran, Iran
2 Associate Professor, Department of Accounting, Faculty of Management and Accounting, Shahid Beheshti University, Tehran, Iran
3 Master of Accounting, Faculty of Management and Accounting, Shahid Beheshti University, Tehran, Iran
10.22034/jse.2024.12115.2072
Abstract
Investment funds have an essential role in collecting small funds. They help to minimize risk and obtain the highest return on investment through the diverse composition of their portfolio. Therefore, it is crucial to understand the factors affecting these funds. Investing in stocks is one of the most critical assets of funds, highlighting the need to address the reporting quality of companies in their portfolio. This study aimed to investigate the relationship between the quality of financial reporting of investment portfolio companies and the fund's performance. Earnings liquidity, accruals quality, and earnings timeliness were used to measure the quality of financial reporting. In addition, fund performance was measured using Alpha Jensen's index. The research population included 50 investment funds selected by quota method from 2016-2020. The research data were analyzed using the generalized least squares method. The findings showed that the earnings liquidity and timeliness of companies have a negative and positive relationship with fund performance, respectively. These results indicate that timely financial report publication is crucial and interest liquidity does not affect fund performance. This issue should be considered when determining financial reporting policies.
Keywords
Mutual Funds
Financial Reporting Quality
Earnings Timeliness. Jensen Alpha
Subjects
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Quarterly Journal of Securities Exchange
Volume 18, Issue 71
Autumn 2025
Pages 111-142