Financial reporting proprietary costs and financial statements comparability: the interactive role of information asymmetry

Abstract

Purpose

This paper aims to investigate the relationship between the proprietary costs of financial reporting and the comparability of financial statements with the interactive role of information asymmetry.

Design/methodology/approach

Data were selected from the information of all the listed companies on the Tehran stock exchange from 2011 to 2021, based on 781 observations. A multiple regression model is used to analyze data.

Findings

Results convey a significant relationship between proprietary costs of financial reporting and comparability of financial statements. Furthermore, information asymmetry has a significant impact on the relationship between proprietary costs of financial reporting and the comparability of financial statements.

Originality/value

Unlike previous studies, this study applies future dependent variables and the residual of dependent and independent variables in the additional analyses, which support the primary hypotheses.

Citation

Salehi, M., Miri, H. and Zimon, G. (2024), "Financial reporting proprietary costs and financial statements comparability: the interactive role of information asymmetry", Management Research Review, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/MRR-08-2023-0563