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.