Today, in developing countries, corporate governance mechanisms are seen as a regulatory factor for the company. According to the representation theory, the first problem with representation is the existence of a conflict of interests between the shareholder and the manager. Listed companies have a high level of disclosure quality because it can reduce the asymmetry of information that shareholders face and help them better manage it. Therefore, one of the factors that can affect the cost of corporate representation is the readability financial reporting. Therefore, based on this argument, the present study uses a structural equation modeling approach to examine the relationship between financial reporting readiness and the cost of corporate representation and the study of the effect of corporate governance moderation on this relationship. For this purpose, three indicators of Flash, Gunning Fugue Index and Text Length Index were used to measure financial reporting readability of the company. The statistical sample of this study consists of 696 Year- Company accepted companies in Tehran Stock Exchange between 2012 and 2017. After reassuring the appropriateness of the measurement and structural models of the research, the findings suggest that readability of financial reporting reduces the cost of corporate representation. In addition, the results show that corporate governance exacerbates the negative relationship between Financial Reporting Readability and Agency Cost.
- حق عضویت دریافتی صرف حمایت از نشریات عضو و نگهداری، تکمیل و توسعه مگیران میشود.
- پرداخت حق اشتراک و دانلود مقالات اجازه بازنشر آن در سایر رسانههای چاپی و دیجیتال را به کاربر نمیدهد.