The effect of Financial Statement Comparability on Value Relevance of Earning and Book value with Emphasis on Financial Reporting Opacity and Internal Control Weakness

The purpose of this study is to investigate the financial statement comparability on value relevance of earning and book value due to the role of financial reporting opacity and internal control weakness. The statistical the population of this study are all companies listed in Tehran Stock Market, in which 102 companies in the period 2013 to 2020 have been selected by systematic elimination method. For data analysis and hypothesis testing, multivariate regression model based on compound data is used. The results of estimating the research model indicate that the financial statement comparability has a positive and significant effect on the value relevance of book value and earnings per share. The findings also showed that when the opacity in financial reporting is high, the effect of financial statement comparability on the value relevance of book value a nd earnings per share decreases. In addition, when there is a weakness in internal controls, the financial statement comparability does not have a significant effect on the value relevance of book value and earnings per share.