Investigating Changes in the Value of Corporate Fixed Assets as a Foreign Factor Affecting Reporting Quality, Financing, and Investment

Document Type: Original Research

Authors

1 Department of Accounting, Aliabad Katool Branch, Islamic Azad University, Aliabad Katool, Iran

2 Department of Accounting, Torbat-e-Jam Branch, Islamic Azad University, Torbat-e-Jam, Iran

Abstract

In this study, the effect of the changes in the value of fixed assets of the firms on reporting quality, financing, and investment, as a foreign factor, was examined in 152 listed firms in Tehran Stock Exchange based on the written information in the financial reports of these firms from 2006-2016. Hypotheses were tested using multivariate regression through Eviews software. Results showed that changes in the value of tangible fixed assets have lower effect on the financing of the firms with high reporting quality compared to the firms with lower reporting quality; but, this was not the case about investment. Also, results showed that changes in the value of fixed assets is correlated with reporting quality. Although based on explained theories in the literature, the correlation of financial reporting quality and provision cost was confirmed, the results of this study didn’t show the effect of changes in the value of fixed tangible assets on the investment of listed firms in Tehran Stock Exchange.

Keywords


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