Ability, CEOs's Financial Knowledge and Financial Reporting Transparency

Individual characteristics of CEOs such as ability and financial knowledge can eclipse their behavior and type of decision in the organization, and thereby affect transparency of financial reporting. In this research, the influence of ability and CEOs’s financial knowledge on the transparency of financial reporting has been investigated. According to the research constraints, the 110 companies accepted in Tehran Stock Exchange have been investigated during the period of 2010-2016. To measure the ability variable from data envelopment analysis technique, and The variable of financial knowledge from Type of educational degrees of CEOs, and to measure financial reporting transparency from multidimensional criterion that covers a wide range of concepts related to transparency, has been used. The results of the research showed that the CEOs’s ability has a positive effect on the transparency of financial reporting, But this effect was not significant. Also, there is a no significant relationship between the financial knowledge of CEOs and transparency of financial reporting. Finally, the results of the research showed that ability and CEOs’s financial knowledge Simultaneously have a positive and significant effect on transparency of financial reporting.