Model of Improving the Financial Transparency of Iranian Public Companies

Document Type : Original Article

Authors

1 Faculty of management, university of Tehran, Tehran, Iran

2 Assistant Professor of Accounting, University of Tehran, Iran

3 Associate Professor in Accounting, University of Allameh Tabatabaei

4 Ph.D. in accounting, University of Tehran

10.22034/iaar.2021.141673

Abstract

The major portion of Iran's annual budget belongs to state-owned companies. Their crucial role in public finances is clearly evident due to their contribution to the national economy and providing public goods and services. All these characteristics boost the need for transparent management of the companies. Using a theme analysis method, this study examines the current state of transparency of Iranian state-owned companies and examines the literature of transparency in related statements and guidelines in different countries, and presents its findings to experts and asks their views on the elements. Then this work seeks to identify the elements of improving the transparency of state-owned companies, providing information based on transparency improvement elements can lead beneficiaries' knowledge to operating environment and how the company is run. Based on the results of the study, a set of actions, considerations and elements related to the role and responsibilities of the Audit Committee, disclosure of information, budgeting and government financial management, internal audit, internal control objectives, stakeholder engagement, policies Compensation services have been introduced. These elements can be used to set a good platform for improving the transparency of public companies. Regulators can improve the transparency of activities and accountability and increase stakeholder satisfaction by incorporating study results into the provision of regulations.

Keywords

Accounting and Auditing Research
Volume 13, Issue 51
September 2021
Pages 23-38

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