A study on the effect of quality characteristics of companies on the financial Reporting in Iran

According to the importance of optimum allocation of resources between enterprises that is undertaken by the stock exchange, so this research is dealing with study the effects of qualitative characteristics of business enterprises on financial reporting. Regarding to the basic and determinant role of disclosure information by the companies that acts as a basis for investors decision making, these information should enjoy of such characteristics as relevance, completeness, accuracy, updated and timely. In this case, the investors won't confuse or make a mistake in their decision about purchasing the stocks. So, it could be realized that the quality of disclosure this information by the companies, is effective in the quality of decision making about optimum allocation of economic resources. As financial reporting indicates the quantity and quality of combining these resources, so this research is studying those efficient factors in the quality and quantity of reported information and disclosure procedures according to five hypotheses.

According to the researches which are accomplished on the base of five non-financial characteristics of companies and the effect of each on the quality of financial reporting, so we realize that the size of a company, ownership structure, kind of industry and companies age are in direct relationship with the quality of financial reporting; but there isn't any significant relationship between the type of auditing institutions and quality of financial reporting.