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Does aural accounting improve the stakeholder relationship capability?

Ali Nouri (Department of Accounting, Khomein Branch, Islamic Azad University, Khomein, Iran)
Mehdi Safari Gerayli (Department of Accounting, Bandargaz Branch, Islamic Azad University, Bandargaz, Iran)
Ebrahim Givaki (Department of Public Administration, South Tehran Branch, Islamic Azad University, Tehran, Iran)
Ali Laalbar (Department of Accounting, Arak Branch, Islamic Azad University, Arak, Iran)

Accounting Research Journal

ISSN: 1030-9616

Article publication date: 26 August 2024

Issue publication date: 3 October 2024

36

Abstract

Purpose

The aim of this study is to examine the effect of aural accounting (AA) on companies’ stakeholder relationship capability in the Iranian capital market.

Design/methodology/approach

In terms of methodology, this study adopts a mixed approach based on both inductive and deductive foundations. The goal is to develop a comprehensive theoretical framework regarding the feasibility and practical implementation of AA and to assess its impact on the ability to interact with stakeholders. In this research, the components of AA were identified through a meta-synthesis process. Subsequently, data on these variables were collected using a researcher-made questionnaire. Additionally, a standard questionnaire was used to measure the stakeholders' interaction capability. The study used partial least squares structural equation modeling for hypothesis testing. A total of 412 participants, consisting of financial managers and heads of accounting departments of capital market companies, were involved in hypothesis testing.

Findings

The results of this study indicate that AA has a significant and positive impact on companies’ stakeholder relationship capabilities. In other words, AA establishes a bidirectional flow of information, enabling companies to demonstrate a more appropriate response to the changing needs of their stakeholders.

Originality/value

To the best of the authors’ knowledge, this study represents the first research to present a framework for AA and examine its impact on companies' interaction capabilities with stakeholders. Consequently, the findings not only contribute to the expansion of theoretical literature in accounting and financial reporting but also provide multiple practical implications for capital market policymakers and standard setters regarding the potential consequences of AA.

Keywords

Citation

Nouri, A., Safari Gerayli, M., Givaki, E. and Laalbar, A. (2024), "Does aural accounting improve the stakeholder relationship capability?", Accounting Research Journal, Vol. 37 No. 5, pp. 500-523. https://doi.org/10.1108/ARJ-03-2024-0116

Publisher

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Emerald Publishing Limited

Copyright © 2024, Emerald Publishing Limited

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