Effect of Companies' Technological Competitive Capabilities on Fraudulent Financial Reporting: Test of Resource-Based View

The development of knowledge and advancement in technology has brought about a wide-ranging transformation in societies and has led to changes in the performance of companies in order to respond to environmental turmoil and social expectations. Many companies have taken full advantage of the opportunity to advance their technology to increase their competitiveness, thereby trying to gain a significant competitive advantage over other competitors. The Purpose of this research is Effect of Companies' Technological Competitive Capabilities on Fraudulent Financial Reporting.

This research in terms of purpose, It is applied in terms of data collection method of quasi-experimental and post-event research in the field of positive accounting research using data envelopment analysis method, the technology-centric capability variable was first measured. The statistical population studied in this study consisted of knowledge-based companies listed on the Tehran Stock Exchange during the years 2015 to 2019 and 76 companies were selected and surveyed based on systematic screening.

The result of testing the research hypothesis is that technological competitiveness has a negative and significant effect on fraudulent financial reporting.

This result, based on the theory-based theory of resource theory test, reflects the fact that, by focusing on technology capacity, companies are able to turn research and development information resources into a competitive advantage in the production of innovative products. Hypocrites with higher returns on performance will be less likely to report fraudulently.