1
PhD in accounting, Department of Accounting, Faculty of Human Sciences, Zanjan University, Zanjan, Iran.
2
Assistant Professor, Department of Accounting, Faculty of Economic and Social Science, Bu-Ali Sina University, Hamedan, Iran.
10.22034/iaas.2025.474774.1643
Abstract
The readability of financial reporting indicates the transparency and effectiveness of information disclosure by company managers. The management characteristics of the company, and especially the CEO, are effective on the readability and understandability of financial reporting. Considering the necessity of having managers with financial knowledge according to the model articles of association of registered companies approved by the Tehran Stock Exchange, as well as the role of CEOs in how financial reporting is prepared and its content, the purpose of this research is to investigate the impact of the CEO's financial knowledge on the readability of financial reporting. In this applied research with a deductive-inductive approach, data from 116 companies listed on the Tehran Stock Exchange during the years 2017 to 2024 were collected, and the research hypothesis was tested using a panneled data approach and applying multiple regression. The empirical results of the research, using the FOG index, indicate that the CEO's financial knowledge has a positive and significant impact on the readability of financial reporting. Also, the results of robustness test, using the number of pages of the board of directors' report, showed that the CEO's financial knowledge has a positive and significant impact on the readability of financial reporting.The results show that the members of the company's board of directors should pay close attention to the academic qualifications of managers, with emphasis on financial and accounting fields, when selecting a CEO.
Abdi,M. and Kazemioloum,M. (2025). Investigation the Impact of the CEO Financial Expertise on Financial Reporting Readability. (e232573). Accounting and Auditing Studies, (), e232573 doi: 10.22034/iaas.2025.474774.1643
MLA
Abdi,M. , and Kazemioloum,M. . "Investigation the Impact of the CEO Financial Expertise on Financial Reporting Readability" .e232573 , Accounting and Auditing Studies, , , 2025, e232573. doi: 10.22034/iaas.2025.474774.1643
HARVARD
Abdi M., Kazemioloum M. (2025). 'Investigation the Impact of the CEO Financial Expertise on Financial Reporting Readability', Accounting and Auditing Studies, (), e232573. doi: 10.22034/iaas.2025.474774.1643
CHICAGO
M. Abdi and M. Kazemioloum, "Investigation the Impact of the CEO Financial Expertise on Financial Reporting Readability," Accounting and Auditing Studies, (2025): e232573, doi: 10.22034/iaas.2025.474774.1643
VANCOUVER
Abdi M., Kazemioloum M. Investigation the Impact of the CEO Financial Expertise on Financial Reporting Readability. Accounting and Auditing Studies, 2025; (): e232573. doi: 10.22034/iaas.2025.474774.1643