Accounting Earning Transparency and Capital Structure

Abstract

Complete, on-time, and quality disclosure of financial information can lead to the transparency of such information and decrease information asymmetry. Among the published information of firms, earnings are of priority importance to many users; therefore, the issue of the transparency of accounting earnings is significant. This study investigates the accounting earning transparency and capital structure, where the relationship between accounting earnings and short-time liabilities, long-term liabilities, and the total liabilities representing the capital structure is investigated. The study's hypotheses were tested by applying financial data from 121 listed firms on the Tehran stock exchange from 2019 to 2023. The study results indicated no statistically significant relationship between accounting earnings transparency and capital structure in the listed firms of the Tehran stock exchange.