Building Financial Reporting Quality through Ethics, Authenticity, and Leadership

Ahmadi Langari, Seyed Hossein

doi:10.22034/necsbm.2025.541589.1143

Building Financial Reporting Quality through Ethics, Authenticity, and Leadership

Articles in Press

Document Type : Original Article

Author

Seyed Hossein Ahmadi Langari

PhD in Accounting, Sari municipality, Sari, Iran.

10.22034/necsbm.2025.541589.1143

Abstract

This study examined the effects of ethical leadership, authentic leadership, and ethical climate on financial reporting quality. Investors and creditors rely on high-quality financial statements to support economic decision-making. To limit the risk of misinformation in lending and investment decisions, financial reports must be relevant, transparent, and reliable. Therefore, it is crucial to understand the aspects that improve the quality of financial reports. This study examines the effects of ethical leadership, authentic leadership, and ethical climate on financial reporting quality. Using a quantitative approach, primary data were collected through an electronic survey. A total of 142 accounting professionals participated and the data were analyzed using PLS-SEM and the research model was analyzed using partial least squares structural equation modeling. The findings indicate that ethical leadership and authentic leadership significantly improve ethical climate. However, ethical leadership, authentic leadership, and ethical climate do not have a significant impact on the quality of financial statements.

Keywords

Ethical leadership

authentic leadership

ethical climate

financial reporting quality

Subjects