Abstract

Recognizing and understanding the financial reporting environment of companies and the factors affecting it is crucially significant because they are important in the process of analyzing financial reports and developing standards. To this end, the present study aims to review the effect of intra-industry correlation on financial reporting environment in companies listed in Tehran’s Stock Exchange. To test the research hypotheses, 126 companies that were listed in Tehran’s Stock Exchange during a period from 2013 to 2016 were selected using the screening method. In this study, the effect of intra-industry correlation on quality of profit, accuracy of management’s projection of future profits and quality of exposure. The EViews software has been used for analyzing the research data. The results obtained from this research indicates that if intra-industry correlation is high, the profit will also be of high quality. Moreover, intra-industry correlation has a significant impact on the accuracy of projection of future profits, but it does not have such an effect on the quality of exposure.