Examining the Effect of Organizational Capital on Financial Statement Comparability: The Moderating Role of Agency Problems

Articles in Press

Document Type : Original Article

Authors

1 Department of Accounting and Auditing, Faculty of Accounting and Financial Sciences, College of Management, University of Tehran, Tehran, Iran.

2 Department of Accounting, Faculty of Accounting and Financial Sciences, College of Management, University of Tehran, Tehran, Iran.

Abstract

The aim of this study is to investigate the effect of organizational capital on the comparability of financial statements and the moderating role of the agency problem in this relationship. Organizational capital, as a key component of intangible assets, can affect financial reporting quality due to its complex and internal nature, despite its role in creating competitive advantage and improving performance. From the agency theory perspective, organizational capital may alter managerial incentives, reducing transparency and limiting the comparability of financial information. This is an empirical, ex-post facto study with a statistical population of firms listed on the Tehran Stock Exchange from 2014 to 2023. The final sample includes 160 firms analyzed using multivariate regression models based on panel data. Findings indicate that organizational capital has a significant negative effect on financial statement comparability, meaning that higher organizational capital reduces comparability. This suggests that firms with greater organizational capital, relying more on internal capabilities, organizational knowledge, and specific processes, are less willing to provide comparable financial reports. Additionally, the moderating test showed that the agency problem does not significantly alter this effect, implying that the reduction in comparability stems from the specific and complex nature of such capital, not merely from conflicts of interest. These results highlight the need for investors, analysts, and regulators to pay more attention to the reporting effects of intangible assets on financial information quality.

Keywords

Main Subjects

Financial Accounting Research

Articles in Press, Accepted Manuscript
Available Online from 07 September 2026

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History

  • Receive Date: 23 April 2026
  • Revise Date: 05 September 2026
  • Accept Date: 07 September 2026

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