Designing a Model for Improving Integrated Financial Reporting and Internal Control (IFICR)

Objective The purpose of this research is to design a comprehensive and holistic model in the field of factors affecting the improvement of the quality of financial reporting and internal control in companies listed on the Tehran Stock Exchange The absence of a comprehensive model that encompasses the factors affecting financial reporting quality, with clear classification and specific indicators, has motivated this research. By considering integrated reporting and internal controls, along with the dimensions identified in previous studies, this research aims to assist managers and experts in adopting a more holistic view of financial reporting and integrated control. This approach seeks to safeguard stakeholder interests by summarizing, combining, and classifying relevant categories and concepts. Methods This research is quantitative in nature, with an applied purpose. It is also a survey in terms of data collection methodology. The statistical population of the study included faculty members and professors of financial management and accounting at Tehran universities, experts from the Stock Exchange and financial and auditing institutions located in Tehran province, and financial and accounting managers of companies listed on the Tehran Stock Exchange. Since the most basic application of factor analysis is to reduce the number of variables to a limited number of factors that usually indirectly affect the main variable, this method was used in this study to analyze the data and reduce the number of variables. Results From the selected sample, 168 people responded to the questionnaires, which were used in the research data analysis. According to the studies conducted concerning the research topic and also according to the results obtained from other researches, studies, articles and research projects and the results of the questionnaire, 41 variables were identified, and after further investigation and consultation with the elites, 11 variables are part of Other variables were considered; Therefore, they were included in its inclusion, thus 30 variables were identified as effective factors on the quality of integrated financial reporting and internal control of listed companies. After applying factor analysis, the Kaiser criterion was used to determine the number of factors. Based on this criterion, five factors with eigenvalues greater than 1 were identified as extractable. These factors collectively explained 91.396% of the total variance of the variables. Conclusion In the presented model, the factors were ranked as follows based on their total factor loadings: management factors with a total factor load of 6.039, legal and regulatory factors with a total factor load of 3.127, organizational and strategic factors with a total factor load of 3.038, cultural and social factors with a total factor load of 2.961, and market structure-related factors with a total factor load of 2.415. These were determined as the most important factors, respectively.