Explanation of the model for evaluating the quality of financial reporting

The possibility of fraud or mistakes in accounting and financial reporting processes or non-compliance with financial reporting standards reduces public trust and increases the level of investment risk. Based on this, the various stakeholders of the capital market pay special attention to the quality of financial reporting. Considering the importance of the subject, this research was conducted with the aim of providing a qualitative model of financial reporting based on structural, supervisory and functional components and using the Grounded Theory method with an in-depth interview of 12 experts in the field of finance and investment. In this way, first, using snowball sampling and based on the opinion of experts, the categories under the title of causal conditions, intervention conditions, contextual conditions, and strategic factors and consequences were analyzed using Max Kuda software, and suitable model variables were identified. The results showed management ability, dividend payment, and investment efficiency, dual role of the CEO, independence and size of the board of directors, institutional ownership and concentration of ownership, independent auditor, competitive product market, audit committee independence, financial leverage, long-term debt, social responsibility and type of ownership. The most effective components are on the quality of financial reporting