African Journal of
Business Management

  • Abbreviation: Afr. J. Bus. Manage.
  • Language: English
  • ISSN: 1993-8233
  • DOI: 10.5897/AJBM
  • Start Year: 2007
  • Published Articles: 4154

Full Length Research Paper

The impact of administration efficiency on financial reporting quality (FRQ) in small sized companies listed in the Tehran Stock Exchange: Evidence from Iran

Mohammad Reza Shoorvarzy and Masoomeh Tuzandehjani*
1Islamic Azad University, Neyshabur Branch, Iran. 2Department of Business management (Financial trends), Islamic Azad University-Neyshabur Branch, Iran.  
Email: [email protected]oo.com

  •  Accepted: 28 April 2011
  •  Published: 30 September 2011

Abstract

In this study, the effect of administration efficiency (AE) on financial reporting quality (FRQ) in small size companies listed in Tehran Stock Exchanges (TSE) has been surveyed in order to evaluate financial reporting quality used from the expected cash flow from operations. To this end, we chose 80 firms (as example) from companies listed in Tehran Stock Exchanges during the period 2001 to 2008. To test the hypothesis, correlation analysis, homogeneity of variance, and independence of Residual, scatter and NORMAL P-P diagrams have been used. This inductive research is based on real information of the audited financial statements. The results show that the impact of AE on FRQ in the small size companies is little.

 

Key words: Efficiency, firm size, quality of reporting, corporate governance, AE, TSE.