The Role of Financial Ratios in Explaining Information Quality Using the Factor Analysis Approach

This study aims to investigate and predict information quality ranking using factor analysis and artificial intelligence in firms listed on the Tehran Stock Exchange for nine years from 2011 to 2019. The independent variable used in this study is the financial criteria of the firm, and the dependent...

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Main Authors: Akram Karimi, Roya Darabi, Mohammad Reza Poorfakharan, Hossein Moghadam
Format: Article
Language:English
Published: Ferdowsi University of Mashhad 2023-01-01
Series:Iranian Journal of Accounting, Auditing & Finance
Subjects:
Online Access:https://ijaaf.um.ac.ir/article_42230_52563b870c8a32d7c4be39b77e742bb0.pdf
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author Akram Karimi
Roya Darabi
Mohammad Reza Poorfakharan
Hossein Moghadam
author_facet Akram Karimi
Roya Darabi
Mohammad Reza Poorfakharan
Hossein Moghadam
author_sort Akram Karimi
collection DOAJ
description This study aims to investigate and predict information quality ranking using factor analysis and artificial intelligence in firms listed on the Tehran Stock Exchange for nine years from 2011 to 2019. The independent variable used in this study is the financial criteria of the firm, and the dependent variable is the quality measurement criteria of accounting information, in which all criteria have been converted into a single variable according to the factor analysis method. The present study is considered empirical accounting research, and the artificial intelligence method has been used to test the research hypotheses. The results indicate that according to the variable selection method of artificial intelligence, neighbourhood analysis among performance variables, including "Accounts receivable to sales ratio criteria", "Firm size", "Financial risk", "Current assets to total assets ratio", and "Cost to Sales ratio ", firms have the highest correlation with information quality rating. Other results indicate that linear and nonlinear artificial intelligence methods can predict accounting information firms' quality ratings on the Tehran Stock Exchange. Due to the importance of financial information quality in financial reporting, and innovation of the present study is the simultaneous use of all information quality criteria and artificial intelligence to examine research hypotheses
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publishDate 2023-01-01
publisher Ferdowsi University of Mashhad
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spelling doaj-art-6a5e2fb8fee446a59e5a45abd2c74f2f2025-08-20T02:39:18ZengFerdowsi University of MashhadIranian Journal of Accounting, Auditing & Finance2717-41312588-61422023-01-017112110.22067/ijaaf.2023.42230.109042230The Role of Financial Ratios in Explaining Information Quality Using the Factor Analysis ApproachAkram Karimi0Roya Darabi1Mohammad Reza Poorfakharan2Hossein Moghadam3Accounting Department,Qom Branch,Islamic Azad University,Qom,IranDepartment of Accounting, South Tehran Branch, Islamic Azad University, Tehran, IranAccounting Department,Qom Branch,Islamic Azad University,Qom,IranAccounting Department,Qom Branch,Islamic Azad University,Qom,IranThis study aims to investigate and predict information quality ranking using factor analysis and artificial intelligence in firms listed on the Tehran Stock Exchange for nine years from 2011 to 2019. The independent variable used in this study is the financial criteria of the firm, and the dependent variable is the quality measurement criteria of accounting information, in which all criteria have been converted into a single variable according to the factor analysis method. The present study is considered empirical accounting research, and the artificial intelligence method has been used to test the research hypotheses. The results indicate that according to the variable selection method of artificial intelligence, neighbourhood analysis among performance variables, including "Accounts receivable to sales ratio criteria", "Firm size", "Financial risk", "Current assets to total assets ratio", and "Cost to Sales ratio ", firms have the highest correlation with information quality rating. Other results indicate that linear and nonlinear artificial intelligence methods can predict accounting information firms' quality ratings on the Tehran Stock Exchange. Due to the importance of financial information quality in financial reporting, and innovation of the present study is the simultaneous use of all information quality criteria and artificial intelligence to examine research hypotheseshttps://ijaaf.um.ac.ir/article_42230_52563b870c8a32d7c4be39b77e742bb0.pdfartificial intelligencefactor analysisfinancial criteriainformation quality
spellingShingle Akram Karimi
Roya Darabi
Mohammad Reza Poorfakharan
Hossein Moghadam
The Role of Financial Ratios in Explaining Information Quality Using the Factor Analysis Approach
Iranian Journal of Accounting, Auditing & Finance
artificial intelligence
factor analysis
financial criteria
information quality
title The Role of Financial Ratios in Explaining Information Quality Using the Factor Analysis Approach
title_full The Role of Financial Ratios in Explaining Information Quality Using the Factor Analysis Approach
title_fullStr The Role of Financial Ratios in Explaining Information Quality Using the Factor Analysis Approach
title_full_unstemmed The Role of Financial Ratios in Explaining Information Quality Using the Factor Analysis Approach
title_short The Role of Financial Ratios in Explaining Information Quality Using the Factor Analysis Approach
title_sort role of financial ratios in explaining information quality using the factor analysis approach
topic artificial intelligence
factor analysis
financial criteria
information quality
url https://ijaaf.um.ac.ir/article_42230_52563b870c8a32d7c4be39b77e742bb0.pdf
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