The Trend of Comparability of Financial Reporting in the Countries of Iran and the United Arab Emirates and the Effective Factors on it

Abstract

The purpose of the research is to answer the question that, despite all efforts to increase comparability at the international level, has this been achieved in the countries of Iran and the UAE? In the current research, 50 companies from Iran and 55 companies from the UAE were investigated from 2012 to 2021. To determine the comparability of financial reporting, Barth's model at the year-industry-company level, and to test hypotheses, combined/combined regression analyses and t-statistics with two independent samples were used in EViews 9 software. The research findings show that during the research period, the trend of comparability of financial reporting in the developing countries of Iran and the UAE has been increasing. The results show that the average comparability of financial reporting in Iran compared to the UAE was significantly higher. In both countries, the effect of company size on the comparability of financial reporting was positive and significant, while the effect of information asymmetry was negative and significant. In Iran, the effect of the company's growth on comparability was negative and significant, and in the UAE, it was positive and significant. In Iran, with the growth of profitability, comparability has decreased, but in the UAE, it has increased. Investigating the process of comparability in a comparative manner with other countries, as well as quantitatively calculating comparability using Barth's model, has increased the richness and development of theoretical foundations within the country

Keywords

• comparability
• financial reporting
• factors affecting comparability
• developing countries