The aim of this study is to investigate the effect of fraud in financial reporting on the financial performance of companies listed on the Tehran Stock Exchange, with an emphasis on the moderating role of board independence. This study is applied in terms of purpose and descriptive-correlational and post-event type in terms of nature and method. The statistical population of the study includes all companies listed on the Tehran Stock Exchange during the period 2015 to 2024. By applying restrictions such as the same fiscal year, the companies' continued presence on the stock exchange, the availability of the information required for the study, and the exclusion of companies active in the banking, insurance, and financial intermediation industries, 105 companies were selected as the research sample, which constituted a total of 1050 company-year observations. The research data were collected from the financial statements and published reports of the companies, and the research hypotheses were tested using a multivariate regression model based on panel data. The research findings showed that fraud in financial reporting has a negative and significant effect on the financial performance of companies; In such a way that increasing the probability of fraud in financial reporting reduces the return on assets. Also, the results indicate that the independence of the board of directors plays a positive and significant moderating role in this relationship; meaning that increasing the independence of the board of directors reduces the severity of the negative effect of fraud in financial reporting on the financial performance of companies. These findings indicate that strengthening corporate governance mechanisms, especially increasing the independence of the board of directors, can help improve the performance of companies by improving the quality of monitoring the financial reporting process, reducing opportunistic behaviors of managers and increasing the transparency of financial information. The results of this study can be useful and practical for managers, investors, auditors, supervisory institutions and developers of corporate governance regulations in order to strengthen supervisory mechanisms, improve the quality of financial reporting, reduce fraud and increase investor confidence in the capital market.