The role of corporate governance in moderating the effect of financial statement complexity on financing and sustainable financial health of companies

Document Type : Original Article

Author

Department of Accounting, University of Isfahan, Isfahan, Iran.

Abstract
Purpose: The purpose of this paper is to investigate the role of corporate governance in moderating the relationship between financial statement complexity and firms’ financing, as an indicator of sustainable financial health.
Methodology: This paper aimed to analyze 236 firms listed on the Tehran Stock Exchange during 2013–2021 using panel data regression. Financial statement complexity is measured by the Fog index and report length, while financing is proxied by bank borrowing.
Findings: The results show that financial statement complexity significantly affects firms’ financing. However, corporate governance does not have a significant moderating effect on this relationship.
Originality/Value: This study highlights the limited moderating role of corporate governance in an emerging market context and provides evidence on how reporting complexity influences firms’ access to finance.

Keywords

Subjects


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