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The Dual Effects of the Existence of Institutional Cross-ownership and Its Impact on Financial Reporting Quality Against the Pressure Caused by External Transparency
Rafid Kadhim Nasif Alobaidi1 , Gholamreza Mansourfar 2, Hamzeh Didar3
1- PhD student, Department of Accounting, Urmia University, Urmia, Iran. r.alobaidi@urmia.ac.ir
2- Associate Professor, Department of Accounting, Urmia University, Urmia, Iran. (Corresponding Author). , g.mansourfar@urmia.ac.ir
3- Associate Professor, Department of Accounting, Urmia University, Urmia, Iran. h.didar@urmia.ac.ir
Abstract:   (360 Views)
Based Based on agency theory and stakeholder theory, institutional cross-ownership can have dual effects on financial reporting quality. External transparency refers to external pressures and oversight that compel firms to adhere to higher standards in information disclosure. Additionally, external transparency can align the incentives and objectives of institutional cross-owners with the company's goals. In this context, the present study aims to examine the impact of institutional cross-ownership on financial reporting quality, considering the pressure from external transparency. This research is applied in nature and, methodologically, falls into the category of descriptive-correlational studies, which focus on analyzing relationships between variables. The statistical sample consists of 106 firms listed on the Tehran Stock Exchange during the period 2014 to 2023. The study employs multivariate regression models to investigate the effect of institutional cross-ownership on financial reporting quality under the pressures of external transparency. The findings from the two research hypotheses indicate that institutional cross-ownership has a direct impact on financial reporting quality. Furthermore, the results suggest that external transparency pressure serves as a positive moderating variable, enhancing the positive effects of institutional cross-ownership on financial reporting quality.
Keywords: Financial reporting quality, external transparency, institutional cross-ownership.
     
Type of Study: Research | Subject: Special
Received: 2024/12/5 | Accepted: 2025/02/25
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