Providing a model to measure the transparency of financial reporting with an emphasis on economic conditions, audit quality and companies' performance

Transparency of financial reporting means that the financial reports of the business entity present the economic realities of the business entity in a way that is understandable to the users of the financial statements. The transparency of financial reporting is one of many influential factors that help external stakeholders and interested in knowing the financial status or performance of the company. The purpose of this research is Provide a model for measuring financial reporting transparency in companies listed on the Tehran Stock Exchange using data mining method. In the first stage of this research, the factors affecting the transparency of financial reporting were identified based on the study of specialized texts and the opinion of 20 experts in the field of financial reporting. Kappa index was used to check the reliability of the components. In order to quantify the identified factors, fuzzy calculations were used in Excel spreadsheet software. The findings of the research showed that external and market-related factors with six sub-components (economic conditions, etc.), corporate governance criteria with eight sub-components (audit quality, etc.), financial criteria with six sub-components (performance and ...) and non-financial criteria with eight sub-components (information technology, etc.) are effective on the transparency of financial reporting of listed companies in the Tehran Stock Exchange. In the second step, the validation of the model was done with the regression method as a data mining method in the form of three hypotheses. For this purpose, the data of listed companies during the period of 1396 to 1400 were used to predict the transparency of financial reporting. The findings showed that there is a significant relationship between economic conditions, audit quality and performance with the transparency of financial reporting. Based on the findings of the research, it is concluded that improving the economic conditions, increasing the audit quality and improving the performance of the companies in order to increase the transparency of the financial reporting of the listed companies.