فصلنامه دانش حسابداری
پیاپی 49 (تابستان 1401)

Risk information disclosure as a major part of the information needed for investors helps them to evaluate and meet corporate risk in their decisions. A review of the literature shows that there has been no comprehensive research on risk reporting evaluation and most studies have evaluated or measured risk reporting with a limited set of indicators. In addition, many of these studies focus mainly on the quality of risk disclosure and other aspects have remained largely overlooked. Accordingly, the purpose of this study is to identify dimensions, components and risk reporting indicators as well as to provide a model for evaluating corporate risk reporting in Iran. 

Based on study purposes, dimensions, components and indicators influencing corporate risk reporting were firstly extracted by studying the theoretical framework and Literature Review as well as conducting semi-structured interviews with experts that fuzzy Delphi technique was employed for their consensus and screening. In the following, relationships between the criteria were determined by the combined approach of Dematel and the Network analysis process (DANP), and then criteria were prioritized and weighted. The statistical population consists of all the individuals with expertise and experience in the field of risk reporting in Iran, including report preparation, monitoring, review, and standard-setting activities. The opinion of these experts is used to specify the final conceptual model. Purposive (snowball) sampling is used for semi-structured interviews until saturation is reached. The same sampling method is used for the FDM and DANP stages. Accordingly, 12 individuals are selected for the interview stage, 74 individuals for the FDM stage, and 15 people in the DANP stage. 

In the first stage of this study, after identifying the dimensions, components, and indicators of risk reporting through a review of the literature, the structure of the initial conceptual model was verified through semi-structured interviews with a panel of experts, and two additional indicators (i.e., risk prioritization and internal overlap) were added to the initial set of indicators. As such, the initial conceptual model was developed with 3 dimensions, 3 components, and 14 indicators to be used in the fuzzy Delphi method (FDM). Results indicate that there is a consensus among experts on accepting the whole indicators determined on the fuzzy Delphi approach. Based on experts' perspectives, the quality dimension of risk disclosure is more important than dimensions of text structure and quantity of risk disclosure. As well, risk disclosure indicators coverage, risk disclosure outlook and the amount of the economic impact of risk disclosure dedicated the most weight. 

Study results demonstrate that the quality dimension is a net causer, while the dimensions of quantity and textual properties are net receivers. This suggests that high-quality risk disclosures by a company can also increase the quantity of its disclosures. In contrast, lengthy risk disclosures with poor quality cannot meet the information needs of stakeholders. Quality in the disclosure of risk information means that the company should report the types of risks it is exposed to, the impact of these risks, and the strategies and actions planned to deal with these risks. This in turn can increase risk disclosure quantity, while preventing the disclosure of redundant, boilerplate sentences and phrases in the risk report and increasing the density of risk disclosures. In addition, the fact that the quality dimension is a net causer and the text properties dimension is a net receiver suggests that adequate risk coverage and disclosure of the impact of risks and the outlook profile as measures of quality will prevent duplication of disclosures and boilerplate reporting by companies in the same industry. Study results demonstrate that reporting the main risks, managing these risks, and risk quantifying got high priority from experts' perspectives. the high weights of coverage, outlook profile, and type of economic effect suggest the critical role of understanding the types of risks that the company faces, reporting these risks as well as the management strategy/plan to deal with or mitigate them, and quantifying the impact of these risks on the financial position, financial performance and future cash flows of the company. These are exactly the factors that companies tend to avoid for the various motives that were discussed earlier in the literature review. Disclosure of all risks and how to manage them incurs costs to the company, and quantifying risks not only entails measurement problems and related costs, but also carries the risk of litigation by stakeholders if measurement is not accurate. Therefore, companies should try to balance stakeholder expectations with the costs and risks associated with corporate risk reporting. The greater importance of textual properties compared to quantity also shows that the lack of complexity, specificity, and lack of redundancy are more important than the length and frequency of reporting. The results of this study can be effective in evaluating, comparing, ranking corporate risk reports, planning regulations and guiding risk information disclosure by regulatory bodies, disclosing appropriate risk information by companies, enhancing stakeholder awareness of corporate risk, and improving decision-making. Given that the present research adopted the Delphi technique and data were collected through interviews and questionnaires, there are limitations related to instruments that were used, including the possibility of researcher bias.

Deciding on the amount of capital expenditure is one of the most critical managers' decisions in companies. Information published in financial statements (mainly accounting profit) and market-based information (primarily the market value of companies) have always been considered two complementary sources of information that influence economic decisions from the perspective of users (including managers). However, the quality of companies' internal information can strengthen or weaken this influence. In other words, the quality of companies' internal environment is expected to influence both the information in financial statements, which is the product of such an environment and the market value of companies, which responds to this product. The better the accounting information quality, the more efficient investment decisions will be. In this study, the term "internal information quality" refers to the quality of the information products produced in the company's internal environment, of which accounting information is only one. According to the "internal information quality" hypothesis, this paper examines the modifying role that the company's internal information quality can play in the impact of the company's value and accounting profit on capital expenditures. 

Two variables, including non-restatement and corporate transparency, have been selected as indicators of the quality of internal information of the company. Then, four hypotheses were compiled, and a sample consisting of 181 Tehran stock exchange listed companies in the period 2011 to 2019 was created. The research hypotheses were tested using multiple regression in Eviews 12 applying the combined data method. In addition, descriptive statistics and correlation analysis were used to analyze the data before testing the hypothesis. In this study, Limer F and Hausman tests were used to determine the nature of the combined data. Brush-Godfrey and Wiggins and poi's (2003) tests were used to determine autocorrelation and heteroscedasticity, respectively. In addition, the VIF statistic was used to test for multicollinearity. We applied the GLS method to reduce heteroskedasticity and added a first-level autoregressive variable ((AR (1)) to control for autocorrelation. To ensure that the results of the research hypotheses did not depend on the measurement method for the variable "quality of internal information," these hypotheses were retested in this study using the variable "corporate transparency" as an alternative indicator to measure the quality of internal information.

The results revealed that firm value and accounting profit have a positive effect on capital expenditures. This is because managers consider the market value of the company as a signal for their investment decisions, and the profitability of these decisions (capital expenditures) is reflected in the accounting profit. It was also found that the "internal information quality" hypothesis does not fit companies operating in Iran. The quality of companies' internal information does not affect the relationship between accounting profit and capital expenditure. No reliable results were found about the internal information quality effect on the relationship between firm value and capital expenditures. The results of this research show that the corporate transparency index is more consistent with the theoretical basis of this research and may be a more appropriate index to measure the quality of internal information than compared to non-restatement. 

Managers of companies operating in Iran in deciding on capital expenditures do not pay much attention to the internal information environment of the company and the information produced by it. This result is probably due to the fact that the quality of internal information is not reliable from the managers' point of view. The provision of this information is associated with high costs for the company. This means that the cost of producing information within the company outweighs the benefits. If managers focus their efforts on improving and enhancing the internal information environment, the information generated by this environment will become a powerful source of information for investment decisions and the benefits will outweigh the costs. Also, to measure companies' internal information quality, the corporate transparency variable is a more reliable indicator than the non-restatement of financial statements. Accounting profit is probably not the most influential product of companies' internal information environment. The results of this study can be helpful for regulatory bodies such as the Securities and Exchange Commission and validation accreditation bodies such as the auditing organization and the Society of Certified Public Accountants. Future researchers are also suggested to design and conduct research that can extract the essential products of companies' internal information environment from the managers' perspective and then use these products as a proxy for accounting profit in this research so that the results can be compared with the current study.

Error management is a process that by identifying errors in a timely manner, in preventing the occurrence of errors and dealing with errors as a key to understanding the production of quality in many areas, including accounting and auditing has found a prominent role. The concept of error management is a general term that reflects the joint efforts and activities of managers and employees of organizations for three general principles of error management, namely: 1- Identification and detection of errors, 2- Prevention of errors and 3- Fixing and resolving errors. In the present study, in order to achieve the first principle of error management, ie identification and detection of errors, go to the strategic document of COSO (2013) and by examining and focusing on the document and in accordance with the proposed research model, which is surveyed by accounting elites, it is clear. That error management in business units originates from the internal controls of those units and can be identified and measured in the presence of these controls. According to the principles of the Kosovo Document, the objectives of the internal controls contained in the document are three categories, which are: Has endangered the business unit is considered as an error and is classified as: 1- operational error 2- compliance error and 3- reporting (accountability) error. In order to identify and detect the mentioned errors, the report of the independent auditor has been used and by means of content analysis, the errors have been studied and extracted manually from the mentioned report. Also, because error management in companies is not measurable, the hypotheses have been tested by the inverse criterion, ie the number of errors. Therefore, companies that have managed these errors correctly will have fewer errors in their portfolio. After identifying, measuring and collecting errors, their impact on fraudulent financial reporting has been investigated and the quality of auditing, which is an important and fundamental tool in error disclosure and has played a significant role in this regard, has been included in the models as a moderating variable.On the other hand, financial reporting is an important tool for fulfilling the responsibility of responding to the needs of respondents in society and the usefulness of financial statements and other financial reports is affected by the quality of financial reporting. The quality of financial reporting has important economic consequences such as increasing liquidity, reducing the cost of capital, increasing the growth of the company and adequate accountability for respondents. Quality financial reporting occurs when the activities and operations underlying financial reporting are managed in terms of possible errors and are free of errors and mistakes. Therefore, to achieve this, error management must be done.  Error management is also critical to the quality of business outcome in the business environment, especially in financial environments, because, first, errors are in direct conflict with the quality of financial reporting and lead financial users to erroneous conclusions. Second, errors cause learning within the organization because they provide clear indications that something is wrong and needs to be changed, and third, research has shown that errors are common in environments with high workload, high time pressure, and rapid changes between Things happen, the need to learn new things, sophisticated technology, diverse customers and high demand for order. All of these characteristics are very common in business environments, which means that error management, in other words, prevention and resolution of recurring errors, plays an important role in the daily work of managers, which ultimately manifests itself in accounting and especially in financial reporting. It becomes. Therefore, due to the important position of error management in various fields, including the accounting profession, it is expected that by identifying, modeling and testing it, we can see better quality information in the form of financial reporting.

The present study is a combination of qualitative and quantitative methods. First, the research model was developed through interviews with 15 experts in the field. The financial statements, which are the most objective criteria for measuring the inaccuracy of the financial statements and the obvious manifestation of fraud and distortion in the financial statements, have been evaluated. The years 2013-2020 have been studied. In order to achieve the research results, hypotheses have been designed that logistic regression has been used to test them.

The results show that among the three types of identified errors, which are compliance, operational and accountability errors, operational error management has a negative and significant effect on fraudulent financial reporting and audit quality has strengthened the relationship. Also, the role of observational errors and reporting (accountability) has been carefully accepted. Regarding the quality of auditing, due to the high independence of the "audit organization" and impartiality in detecting, reporting and disclosing errors in detail in the Annual audit report, business units that have manipulated their actual activities have been forced to record adjustments and resubmit financial statements. They themselves have recorded that this alone has shown the high independence of the organization as a formal institution with a high executive guarantee in detecting and exposing errors.

Error management in business units, especially in the operational sector, in addition to increasing the efficiency and effectiveness of business unit operations, also reduces the possibility of fraudulent financial reporting and improves the quality of financial reporting.

Recent corporate scandals, global financial crises, and global environmental issues have led to a growing demand from diverse stakeholders for transparency and regular disclosure of information. The financial statements provide all the financial information related to the financial condition, financial performance and cash flows of the company that is beneficial to all stakeholders. Accordingly, these statements are not merely a set of numbers, but a means of making economic decisions for multiple stakeholders. The importance of the content of financial statement information motivates management to improve its performance to ensure the existence and survival of the company. But sometimes the company can not perform well, so the information in the financial statements will not be satisfactory. This is why management tends to commit fraud, so it manipulates financial statement information to make it look good. For many years, fraudulent reporting has become an important topic that has attracted the attention of many researchers to investigate its determinants. The history of many cases of corporate fraud has shown that management fraud has the most serious and most threatening effects. Organizational management fraud reflects a failure in the corporate governance structure, because the mechanisms that limit the extravagance of senior managers are essentially embedded in corporate governance.A company's financial sustainability is defined in terms of its ability to facilitate and enhance economic resources, manage risks, and resolve shocks. In cases where the financial condition of the firm is unstable and growth is below industry average, management may be inclined to fraudulent financial reporting to present a picture of stable and robust financial health of the company. Fraudulent reporting is considered as a failure in its corporate governance structure. So, it is argued that the higher the quality of corporate governance, the lower the propensity for fraudulent reporting. Assets are a reflection of the wealth of a company that can be used as a benchmark by investors. In many studies, asset growth has been introduced as a measure of financial stability, in addition, Z-Score has been used as a measure of financial stability which assesses the distance from insolvency and the likelihood of bankruptcy. The higher the Z-Score, the lower the risk of bankruptcy and financial distress of company, and therefore the greater the financial stability. In general, companies with good financial stability tend to avoid from the pressure so that they control themselves not to commit fraudulent practices, while the companies with financial distress tend to have a greater pressure to commit fraudulent practices. Therefore, they will have more motivation to commit fraud. Accordingly, the purpose of this study is to Empirical test the association between financial stability and fraudulent financial reporting and to examine the moderating role of quality of corporate governance mechanisms on this relationship. 

The research is applied in terms of purpose, cross-sectional in terms of execution time and descriptive-correlation in terms of the nature of execution. In order to Empirical test the association between financial stability and fraudulent financial reporting and to examine the moderating role of quality of corporate governance mechanisms on this relationship, Four research hypotheses were presented as follows:Hypothesis 1: There is a significant relationship between the growth of company assets (financial stability) and the likelihood of fraudulent financial reporting.Hypothesis 2: The lower the Z-Score (financial stability), the greater the likelihood of fraudulent financial reporting.Hypothesis 3: The quality of corporate governance mechanisms moderates the relationship between asset growth (financial stability) and fraudulent reporting.Hypothesis 4: The lower the Z-Score (financial stability), the lower the likelihood of fraudulent financial reporting as the quality of corporate governance mechanisms increases.research sample includes 102 companies listed on the Tehran Stock Exchange during the period 2016 to 2020 were used. financial stability is measured by using asset growth and Z-Score and research hypotheses were tested using logistic regression.

In the first two hypotheses, the relationship between financial stability in terms of asset growth criteria and Z-Score with fraudulent financial reporting was proposed. The results of testing the first hypothesis indicate a positive and significant relationship between asset growth and fraudulent financial reporting. This indicates that an increase in the ratio of changes in net assets increases the risk of fraudulent financial reporting. The results of testing the second hypothesis showed that there is no significant relationship between Z-Score and fraudulent financial reporting, although the negative coefficient of the variable indicates a negative relationship between this two variables.In the third and fourth hypotheses, the moderating role of the quality of corporate governance mechanisms on the relationship between financial stability (in terms of its dual criteria) and fraudulent financial reporting was investigated. The quality of corporate governance mechanisms were measured and considered in three headings: board of directors index, shareholders' rights index and information transparency index.The results of the third hypothesis test showed that the interactive relationship of financial stability in terms of asset growth and quality of corporate governance mechanisms is not significant in two of the three indicators, in other words, the quality of corporate governance mechanisms on the relationship between financial stability and fraudulent financial reporting, adjusting role does not have.The result of examining the moderating role of all three indicators of corporate governance mechanisms on the relationship between financial stability in terms of Z-Score and fraudulent financial reporting has shown that the shareholders' equity index is not significant. In other words, the high quality of corporate governance mechanisms in terms of shareholder rights reduces the possibility of fraudulent reporting in the absence of a Z-Score. Regarding the indicators of board of directors and information transparency, the significance of the interactive variable of corporate governance quality and Z-Score indicates the moderating role of this index.

Under conditions of weak financial stability, the fraudulent financial reporting motivation increases. This motivation is doubled in an environment with inappropriate controls. In financial instability, improving the quality of corporate governance mechanisms can reduce the likelihood of fraudulent financial reporting. Despite the fact that the new corporate governance requirements have been mentioned with reference to financial stability, but considering that there are several indicators for measuring financial sustainability, it is suggested that more requirements be set by considering other indicators of financial stability.

Investment efficiency is one of the important and influential factors on the firm’s performance. Management financing decisions affect investment decisions due to the effects that the Non-optimal capital structure has on the cost of capital rate and cash flows of the firm. In addition, one of the important and influential factors on the financing and investment decisions is the information asymmetry between management and investors. Increasing the quality of accounting information will reduce the information asymmetry between management and investors that can affect the firm's capital structure and investments. This research investigates the effect of accounting information quality on the relationship between the degree of non-optimality of capital structure and investment inefficiencies of a firm.

This is an applied reseach and it is a quasi-emprical research and its methodology is post-event research. This research investigates the real data of firms listed on the Tehran Stock Exchange (TSE) and, because of that, its results are generalizable to the research population. In this research, we have used a systematic elimination method to choose the research sample. The research hypotheses were examined by collecting data from 147 companies listed on the Tehran Stock-exchange during 2004-2019. Accounting information quality was measured using the model of Francis et al. (2005) and investment inefficiencies were also measured using the model of Biddle et al. (2009) and the non-optimality degree of the capital structure was also measured by the model introduced by Synn and Williams (2015).

The results of testing research hypotheses show that there is a positive and significant relationship between the non-optimality of the capital structure and inefficiencies of investment. In this way, the increase in the non-optimality of the capital structure increases inefficiencies of business unit's investments. Also, the findings show that the quality of an accounting information reduces the inefficiencies of investments in the business unit by reducing the non-optimality of capital structure, that is, it actually moderates this relationship. In other words, increasing in the non-optimality of the capital structure increases the inefficiency of the investments of business units. Also, reducing profit management through discretionary accruals and increasing the quality of profit, which is a measure of increasing the quality of accounting information, will reduce information asymmetry between management and investors. Following the reduction of information asymmetry, the problems caused by the problem of reverse selection and the sensitivities and problems of financing are reduced, and as a result, the financing process is easier for the company and causes the state of the company's capital structure to be closer to the optimal point. Finally, with the improvement of the capital structure and the positive impact of reducing the non-optimality of the capital structure on the cost of capital and cash flows at the management's disposal, the decision-making process of the management in the field of company investments will tend to increase efficiency. The results of the present study are in line with the results of Bharath et al. (2009) and Gomariz and Balesta (2014).

The quality of accounting information as one of the factors that reduces information asymmetry can decrease the non-optimality of the capital structure through adjusting available cash flows and expected interest rates, which leads to a reduction in the inefficiency of the entity’s investments. The results of this research can be useful for investors, managers and the stock exchange organization. considering the effect of the non-optimal size of the capital structure on the inefficiency of the investments of business units, the managers should identify the optimal ratio of their capital structure and calculate the deviation of the company's capital structure from the optimal level and in the direction of take steps to achieve the optimal capital structure, and according to the results of this research, by achieving the optimal capital structure (reducing the non-optimality of the capital structure), they can speed up the reduction of the inefficiency of investments, which can lead to an increase in the value of the company. Actual and potential investors are suggested to pay attention to the quality of accruals and the optimal size of the capital structure of listed companies because these things can ultimately lead to an increase in the value of the company. Also, considering the fact that the analysis of the quality of accruals and the optimization of the capital structure may be difficult or impossible for a large part of investors, perhaps in this regard, the ranking of companies in terms of these cases, by the stock exchange organization, is a useful help in choosing the best company for investors.

From the economic point of view, investment in employment for advanced companies which possess a high level of human capital is significant. To be specific, deviation from the optimal level of investment in employment can deteriorate competitional advantage, efficiency, and future performance of companies. In other words, one of the most important decisions of companies that have important economic consequences in the long run, both for the country and company, is decisions related to the efficiency of investment in labor employment. These decisions primarily rely on the confidential information of management about the skills and efficiency of the employee. Accounting information with high quality can increase the ability of oversight for investors and shareholders. In general, comparability can reduce the expense of paraphrasing accounting information. Accordingly, in this study, the role of one of the key features of accounting information quality (accounting comparability) on the labor investment efficiency in companies was investigated. In the meantime, the moderating role of features including financing constraint, internal and external monitoring is studied.

The research methodology is quantitative research that adopts the scientific method and empirical evidence, based on hypotheses and ex-post research design. This type of research is utilized when criteria data quantitative are used. In this research, data from 91 firms listed on Tehran Stock Exchange from 2010 to 2020 was gathered through the financial statements and Rahavard Novin software. Also, according to the research purpose, financial constraints, external and internal oversight are regarded as moderating variables. Statistical analysis was carry out by multi-variable regression in panel data structure with Eviwes software.Based on the theoretical literature and the conducted studies, research hypotheses were developed as follows:First hypothesis: Accounting comparability has positive and significant effects on the labor investment efficiency.Second hypothesis: Financing constraint reinforce the intensity of the positive effect of accounting comparability on labor investment efficiency.Third hypothesis: In weaker external monitoring, the effect of accounting comparability on the labor investment efficiency is stronger.Fourth hypothesis: In weaker internal monitoring, the effect of accounting comparability on the labor investment efficiency is stronger.Our proxies for labor investment efficiency are constructed based on the method of Pinnuck and Lillis (2007) model. The model takes the following form:Net-Hiringi,t = α + β1Sales_Growthi,t + β2Sales_Growthi,t-1 + β3ROAi,t + β4∆ROAi,t + β5∆ROAi,t-1 + β6Returni,t + β7Sizei,t-1 + β8Quicki,t-1 + β9∆Quicki,t + β10∆Quicki,t-1 + β11Levi,t-1 + i,t-1k + Industry Dummies + εi,t (1)Where Net_Hiring -denoting a firm's net hiring- measures labor investments and is calculated as the percentage change in the number of employees. To estimate expected labor investment, the model includes a series of firm-specific characteristics, including sales growth (Sales_Growth); return on assets (ROA); annual stock return (Return); firm size (Size); quick ratio (Quick); leverage ratio (Lev); loss interval indicators (Loss_Bin); and industry dummies.

The results of the regression analysis of the study showed that accounting comparability has positive effects on the labor investment efficiency. Also, companies with more tangible assets, dividends, institutional investors, and labor intensity tend to have a higher level of efficiency of labor investments. On the contrary, companies with higher quick ratios, cash flow volatility, net hiring volatility, and loss invest in labor employment with lower efficiency. Furthermore, accounting quality shows that companies that have a higher quality of income can reduce inefficiency in labor employment investment. Evidence also shows that when firms have financing constraints, and weak internal and external monitoring a stronger positive relationship between accounting comparability and labor investment efficiency exists.

The evidence obtained from the research results showed that accounting comparability has a positive effect on the labor investment efficiency. It means that comparable accounting information can reduce false decisions to hiring and firing. Thus, shift the labor investment efficiency toward desirable level. Deviation from the optimal level of investment in labor can deteriorate the future performance of a company and it is in contrast with the interest of shareholders. In this regard, standard setters can improve the labor investment efficiency by adopting ways to improve the comparability of companies' information. Also, in situations where internal and external monitoring are not in a good position, the labor investment efficiency can be improved by providing comparable accounting information. Further analysis showed that accounting comparability have positive effect on the labor investment efficiency in companies with financing constraint while this subject is not significant for firms without financing constraint. This subject shows that in situations with financing constraint, accounting information can play an important role and also help the managers of companies.

 The financial statements of a company show its financial position, which can have an impact on the investor's behavior. The information contained in the financial statements of a company can play a useful role by enabling users to compare the company with those in the same industry or the history of that company. Comparability is one of the most important qualitative characteristics of financial reporting and is defined as stickness of the earnings of two companies. It helps users to evaluate the performance of the company by facilitating the extent to which the understanding is gained. Companies listed in the same industry have the same nature of the activity and are being derived from the same economic circumstances, and due to having a similar earning structure, it is expected to go through higher comparability. Comparability through enhancing the quality of accounting information helps users to produce more effective and accurate forecasts. The concept of comparability stems from consistency affected by both accounting standards and judgment. Thus, the existence of accounting standards solely does not lead to comparability. These standards should be not only applied uniformly by accountants but also interpreted the same by auditors. Auditor's judgments can affect earnings comparability which is influenced by their characteristics including work style, expertise, and knowledge.  While current studies focus more on the role of accounting standards and turn a blind eye to the effect of auditors on information comparability, this study attempted to shed light on this issue. From this point of view, the behavior of auditors is influenced by the strategy of the audit firms and their characteristics. In this regard, comparability is a joint product of Auditor's characteristics and audit firm's reputations. The relationship between auditor's characteristics and earnings comparability was examined in this paper. It is the first time that this concept is taking into account in Iran. The result will contribute to the regulators in the auditing profession by analyzing the importance of the individual effects of auditors on audit quality and putting the side effects of the trembled relationship of auditors with their audit firm under scrutiny.

This research is considered as applied research and its method is descriptive-correlation. The population is companies listed on Tehran stock exchange (TSE) and Iran farabourse. The sample is selected based on some criteria between 2014 and 2019 (including 768 year-company). Data were analyzed using the estimated generalized least squares (EGLS) and the generalized least squares (GLS) methods which helpsto overcome on issues regarding autocorrelation or heteroscedasticity. 

The results showed that the auditor's style has significant positive relationship with earnings comparability. Moreover, increasing the teamwork experience enhances earnings comparability; However, the size of audit firm does not have a significant effect on earnings comparability. 

The work ties between auditors can provide the same work style improving the earnings comparability through the standardization of interpretation and application of accounting and auditing standards. The work style is the feature of an auditor which should be considered in the comparability assessment. Moreover, the more the teamwork experience is the higher similarity in the work style obtained through social learning and sharing knowledge and experience which results in earnings comparability. As a result, other characteristics such as expertise and knowledge can be effective in the comparability context. Investors can pay attention to the number of years auditors have been working in the same industry as colleagues when they evaluate the quality of the information. Furthermore, disclosure of the information regarding expertise and education of auditors signing the audit report provides more accuracy for investors in the determination of information reliability. Audit quality is a matter of both auditor's related and audit firm's related characteristics. In this regard, auditors have an impact on audit quality by switching their audit firms which is a prevalent issue in the audit market in Iran and should be addressed by regulators.

In recent years, high inflation has caused many problems for companies. The financial turmoil has caused companies to lose their value due to the imposition of capital costs and the inability to attract foreign capital and to get a poor rating compared to their competitors. Companies try to satisfy shareholders and stakeholders by reducing risk and increasing company value. Stakeholder concerns about financial turmoil are seen as a positive factor in ameliorating financial turmoil. Therefore, it can lead managers to find the right solution. There are several ways to reduce company risk and avoid financial turmoil. In the current economy, one of the most important ways to satisfy shareholders, stakeholders, and institutions is to provide activities related to social responsibility and pay attention to it. Today, corporate social responsibility is considered one of the most important financial issues. One of the ways out of these problems is to increase the social responsibility performance of the company. Considering the various results presented in this field, it seems necessary to conduct more research in this field to obtain reasonable results. Most of these problems are affected by life cycle stages. So; Compliance with social responsibility at different stages can help the company's sustainability. On the other hand, the impact of social responsibility on financial volatility depends on economic changes and developments, which vary throughout the life cycle. And the impact of CSR may not be the same in all stages of the life cycle. In this research, two goals have been pursued, one is to investigate the effect of social responsibility performance on financial turbulence without considering the life cycle. Another is to examine the impact of corporate social responsibility performance on financial turmoil over the life cycle. Therefore, the purpose of this study is to investigate the effect of social responsibility performance on financial turbulence during the company's life cycle for a period of ten years.

The statistical sample of this research includes 112 active listed companies during the period of 2009 to 2019. To measure the performance variable of the company's social responsibility, using the website of Tehran Stock Exchange and the website of Kodal, about 36,000 pages of reports of the activities of the board of directors during the considered years were studied, and the scores of each dimension of the company's social responsibility were inserted in an Excel file. and finally, using the mathematical method (directed distance function), the social responsibility performance of companies was evaluated. Berger et al., Almeida, Campello and Altman models have been used to measure financial turbulence. Research hypotheses have been tested using panel data and fixed effects by multivariate regression statistical method.

The results show that the performance of social responsibility either in general or in detail, regardless of the company's life cycle, alone cannot reduce financial turmoil. The variable combination of the company's social responsibility performance with the life cycle in the stages of growth and maturity shows a significant and decreasing effect on financial turmoil. In fact, it can be said that corporate social responsibility performance and life cycle jointly reduce financial turmoil. The combination of social responsibility performance with the life cycle has a positive and significant effect on financial turbulence in the recession stage and has no effect in the decline stage.

Companies can reduce business risk and financial turbulence through social responsibility management. Companies that have a high social responsibility performance have more credibility. This makes it easier for companies to access financial resources. Therefore, companies try to attract the opinion of their shareholders and stakeholders in different ways, in order to attract more capital and suffer less financial turmoil. As companies compete more in the stages of growth and maturity than in other stages of the life cycle, they pay more attention to social responsibility; Therefore; Based on the results, it can be concluded that the life cycle of the company and the performance of social responsibility jointly reduce financial turmoil.The results of the research showed that the life cycle moderates the relationship between social responsibility performance and financial turmoil and plays an important role. In such a way the companies that are in the maturity stage can reduce the financial turmoil by increasing the performance of social responsibility. Therefore, it seems that the results can be of great help to investors and stakeholders. Therefore, in order to reduce the risk of their investment, investors and users are suggested to examine the companies in terms of their life cycle and choose companies that are in the maturity period and have high financial resources, and also enjoy high social responsibility performance. Because investing in such companies will reduce the investment risk and the investor's concern will be reduced.