Investigating the Impact of Financial Reporting Quality on the Risk of Stock Price Collapse with Regard to the Moderating Role of Corporate Governance

Authors

  • Yazdan Rostami * Department of Accounting, Financial Manager and CEO of Pishgaman Accounting Company, Amrouleh, Tehran, Iran. https://orcid.org/0000-0002-0564-1523
  • Elyas Asgari Department of Accounting, South Tehran Branch, Islamic Azad University, Tehran, Iran.
  • Nafiseh Rajaee Department of Accounting, Attar Institute of Higher Education, Mashhad, Iran.
  • Samira JafarzadehTaraghdari Secretary of Arts, Education, Torghaba County, Shandiz, Torghaba, Iran.

https://doi.org/10.22105/aaa.v2i4.80

Abstract

The purpose of this study is to investigate the effect of financial reporting quality on the risk of stock price collapse with respect to the moderating role of corporate governance. The present study is an applied research in terms of its purpose, a descriptive post-event research method, a positive research in terms of its theoretical approach, and an inductive research in terms of its reasoning, as well as a quasi-experimental research in the field of financial accounting research. The time period of this study is the  Six -year period from 2019 to 2024. The statistical sample of the study was selected by systematic (purposeful) elimination method, consisting of 110 companies. In this study, a multivariate linear regression model was used to test the hypotheses. The statistical method used in this study is the panel data method. The statistical analysis of the data was carried out using Excel and Eviews10 software. The results of the study show that the quality of financial reporting has a significant negative relationship with the risk of stock price collapse of companies listed on the Tehran Stock Exchange. Also, institutional ownership and the percentage of non-executive directors as corporate governance criteria do not have a moderating role in the relationship between the quality of financial reporting and the risk of stock price collapse.

Keywords:

Financial reporting quality, Information transparency, Stock price crash risk, Corporate governance

References

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2025-12-23

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Vol. 2 No. 4 (2025): Accounting and Auditing with Applications

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How to Cite

Rostami, Y., Asgari, E. ., Rajaee, N. ., & JafarzadehTaraghdari, S. (2025). Investigating the Impact of Financial Reporting Quality on the Risk of Stock Price Collapse with Regard to the Moderating Role of Corporate Governance. Accounting and Auditing With Applications , 2(4), 312-325. https://doi.org/10.22105/aaa.v2i4.80

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