Investigating the Relationship between Company Innovation and Transparency of Accounting Information with Emphasis on the Moderating Role of Audit Dimensions

The purpose of this study is to investigate the moderating role of auditing dimensions on the relationship between firm innovation and transparency of accounting information of companies listed on the Tehran Stock Exchange (TSE). The statistical population of this research is the companies listed on the Tehran Stock Exchange and the statistical sample includes 184 companies in the period of 2009-2018. Eviews software and multivariate regression analysis were used to test the research hypotheses. The results of the first hypothesis test showed that the company's innovation has a positive and significant effect on the transparency of accounting information. In other words, companies engaging in innovative activities (such as research and development activities, staff training costs, the level of intellectual property of the company, the use of modern management accounting methods and the acquisition of machinery, equipment and software) lead to a transparent information environment. The results of testing the second hypothesis indicate that the dimensions of auditing have a positive and significant effect on the transparency of accounting information. The results of testing the third hypothesis showed that the variable of audit dimensions has a significant effect on the relationship between innovation and transparency of accounting information. The findings showed that companies engaging in innovative activities (such as research and development activities, staff training costs, the level of intellectual capital of the company, using new management accounting methods and acquiring machinery, equipment and software) lead to a transparent information environment.