Investigating the Relationship between Earnings Quality and Financial Stress with the Moderating role of financial knowledge of the Board of Directors

Providing information related to the earnings quality causes the reaction of investors and the high earnings quality is effective in financial stability due to the reduction of risk for shareholders. The purpose of this study is to Investigating the relationship between earnings quality and financial stress with respect to the moderating role of financial knowledge of the Board of Directors. The information from this study is taken from the financial statements of 168 companies during the period 1390-1397. The research is applied in terms of purpose; in terms of nature and content it is a correlation type. Multiple regressions based on panel data analysis (panel data) were used to test the relationship between variables and the significance of the model. The results of hypothesis testing showed that there is a negative and significant relationship between earnings quality and financial stress in companies listed on the Tehran Stock Exchange. And financial knowledge of board members affect the relationship between earnings quality and financial stress in companies listed on the Tehran Stock Exchange.