Economic Uncertainty and Financial Reporting Readability
نویسندگان
1 Professor, Department of Accounting, Faculty of Social Sciences and Economics, Alzhahra University, Tehran, Iran.
2 Assistant Professor, Department of Accounting, Faculty of Social Sciences and Economics, Alzahra University, Tehran, Iran.
3 PhD Candidate, Department of Accounting, Faculty of Social Sciences and Economics, Alzahra University, Tehran, Iran.
doi
10.22108/far.2025.145118.2128چکیده
Economic policy uncertainty stands as a formidable challenge in the realm of financial reporting, wielding a profound influence over the presentation of crucial financial information. Thus, it becomes imperative to incorporate the effects of this uncertainty into the models that explore the factors shaping the readability of financial reports. This research aims to illuminate the relationship between economic policy uncertainty and the readability of financial reporting among companies listed on the Tehran Stock Exchange over a decade, spanning from 2013 to 2022, by employing a robust panel data regression approach. The findings reveal that uncertainty related to exchange rates and inflation exerts a significant negative impact on the clarity of financial reports. In contrast, fluctuations in economic growth and variations in the effective tax rate positively and significantly enhance reporting readability. Interestingly, the study found no noteworthy connection between interest rate uncertainty and the readability of financial reporting. These insights serve not only to enlighten policymakers but also to inspire deeper commitment to making financial reports more accessible and comprehensible to all stakeholders.
