Journal of Accounting and Management Vision

Journal of Accounting and Management Vision

Investigating the impact of financial constraints on the restatement of financial statements in manufacturing companies listed on the Tehran Stock Exchange.

Document Type : Original Article

Authors
sedigheh tabe matoghi 1
hassan ahmadi 2
1 Master’s Degree in Financial Management, Kherad Institute of Higher Education, Bushehr, Iran.
2 Department of Accounting, Kherad Institute of Higher Education, Bushehr, Iran.
Abstract
The objective of this research is to investigate the impact of financial constraints on the restatement of financial statements in manufacturing companies listed on the Tehran Stock Exchange during the period 2017-2023. Given the binary nature of the dependent variable (occurrence or non-occurrence of financial statement restatement), a logistic regression model was used to test the research hypotheses. The statistical population consisted of 120 manufacturing companies whose required data were extracted from audited financial statements. Companies' financial constraints were measured using indicators based on liquidity status and financing structure. The results from estimating the logistic model indicate that financial constraints have a significant positive impact on the probability of financial statement restatement; meaning, as the intensity of financial constraints increases, the probability of financial statement restatement also increases. These findings suggest that financial pressures can lead to financial reporting errors or the disclosure of financial corrections in subsequent periods. The results of this research can be useful for investors, auditors, and supervisory bodies in assessing the quality of companies' financial reporting.
Keywords
Financial constraints
financial statement restatement
Tehran Stock Exchange

Subjects