A Comprehensive Disclosure Model in Iranian Commercial Insurance Companies Centered on International Financial Reporting Standards Using a Multi-Grounded Theory Approach
Keywords:
Comprehensive Disclosure, Multi-Grounded Theory ApproachAbstract
Voluntary disclosure of information is an indirect mechanism through which International Financial Reporting Standards (IFRS) generate benefits for capital markets. Managers typically employ voluntary disclosure as a substitute for mandatory reporting, thereby conveying confidential company performance information to investors. The aim of this study is to present a comprehensive disclosure model for Iranian commercial insurance companies, focusing on IFRS and utilizing the multi-grounded theory approach. The first step involves formulating research questions based on the dimensions of grounded theory. In the second step, the researcher systematically reviews published articles in reputable domestic and international scientific journals to identify credible and valid documents within an appropriate time frame. Initially, related keywords—both individually and in combination—were examined in Persian and English for the period 2013 to 2024, and for English-language articles from 1980 to 2024. As a result, 27 relevant articles were identified. Since data collection in the grounded theory approach is based on theoretical sampling, in this study, data were synthesized through meta-combination, followed by in-depth interviews. Subsequently, using grounded theory and integrating it through the multi-grounded approach, a comprehensive model for identifying the disclosure framework was developed. Reporting and information disclosure are the most critical tools companies use to communicate with shareholders. When information disclosure is mandated by a regulatory or legislative authority, it is referred to as mandatory disclosure. In contrast, if the disclosure is not influenced by specific regulations and is conducted voluntarily by the company, it is considered voluntary disclosure. The voluntary disclosure theory posits that managers will disclose company information under their control if the benefits of such disclosure outweigh the associated costs.
References
O. M. Alhawtmeh, "The Impact of IFRS 17 on the Development of Accounting Measurement and Disclosure, in Addition to Improving the Quality of Financial Reports, Considering Compliance With the Requirements of IFRS 4—Jordanian Insurance Companies-Field Study," Sustainability, vol. 15, no. 11, p. 8612, 2023, doi: 10.3390/su15118612.
F. Yusnita, I. Khairunnisa, and P. C. Azwari, "Use of Information Technology, Accounting Information Systems, Internal Control on the Quality of Financial Reporting Village-Owned Enterprises Ogan Ilir," Jurnal Ekonomi Bisnis & Entrepreneurship, vol. 18, no. 1, pp. 121-136, 2024, doi: 10.55208/jebe.v18i1.506.
K.-C. Ho, R. Sun, L. Yang, and H.-M. Li, "Information disclosure as a means of minimizing asymmetric financial reporting: The role of market reaction," Economic Analysis and Policy, vol. 78, pp. 1221-1240, 2023/06/01/ 2023, doi: 10.1016/j.eap.2023.04.022.
V. H. Ho, "Non-financial reporting & corporate governance: Explaining American divergence & its implications for disclosure reform," Accounting, Economics, and Law, pp. 1-23, 2021.
P. Joshi and U. India, "Role of financial reporting standards in enhancing transparency and accountability: an empirical study," Journal of Corporate Disclosure Review, vol. 12, no. 6, pp. 123-136, 2023, doi: 10.48047/jcdr.2021.12.06.333.
G. Kurdistani and S. M. Mohammadi Nasab, "The impact of internal control effectiveness on risk disclosure in financial reports," Financial Accounting and Auditing Research, vol. 15, no. 57, pp. 1-22, 2023. [Online]. Available: https://faar.ctb.iau.ir/article_699781.html.
A. Pobrić, "Economic Consequences of Disclosure of Information on the Effectiveness of Internal Control Over the Financial Reporting System," Ekonomske Ideje I Praksa, no. 49, pp. 63-82, 2023, doi: 10.54318/eip.2023.ap.343.
M. Y. Abdel Rahim, "The role of expanding the disclosure of accounting estimates in reducing the ambiguity of financial reports," Alexandria Journal of Accounting Research, vol. 6, no. 3, pp. 349-396, 2022.
B. L. Handoko and A. L. P. G. Prastiwi, "Financial statement fraud detection using analysis of corporate social responsibility disclosure and annual report readability with earnings management as moderating variable," 2022, pp. 53-59, doi: 10.1145/3549823.3549832.
K. H. Wruck and Y. Wu, "The relation between CEO equity incentives and the quality of accounting disclosures: New evidence," Journal of Corporate Finance, vol. 67, p. 101895, 2021/04/01/ 2021, doi: 10.1016/j.jcorpfin.2021.101895.
N. O. D. Ellili, "Impact of ESG disclosure and financial reporting quality on investment efficiency," Corporate Governance, vol. 22, no. 5, pp. 1094-1111, 2022, doi: 10.1108/CG-06-2021-0209.
Á. Tóth, A. Suta, and F. Szauter, "Interrelation Between the Climate-Related Sustainability and the Financial Reporting Disclosures of the European Automotive Industry," Clean Technologies and Environmental Policy, vol. 24, no. 1, pp. 437-445, 2021, doi: 10.1007/s10098-021-02108-w.
B. Lin and N. Wu, "Climate risk disclosure and stock price crash risk: The case of China," International Review of Economics & Finance, vol. 83, pp. 21-34, 2023/01/01/ 2023, doi: 10.1016/j.iref.2022.08.007.
M. Nooreddin and Z. Poorzamani, "Disclosure of Environmental Information in Financial Reporting," Accounting and Auditing Research, vol. 14, no. 55, pp. 97-112, 2022, doi: 10.22034/iaar.2022.162394.
S. H. Sidauruk, M. S. Rizkian, and H. E. B. Sembiring, "A Digital Tehcnology Innovation Financial Reporting Based Of Software Accurate Accounting System," Jurnal Ekonomi, vol. 13, no. 02, pp. 1364EP - 1373, 2024.
S. C. Drilia, "The Impact of Internal Control, HR Competence, and Organizational Commitment on Financial Report Quality Regional Government Organization, With IT Utilization as a Moderator (Study on Regional Government Organizations in Southern Sumatera)," International Journal of Asian Business and Management, vol. 4, no. 2, pp. 177-188, 2025, doi: 10.55927/ijabm.v4i2.155.
S. Sudarlan, S. Surahman, N. Affan, P. M. Vidhiyanty, and L. Hasanah, "Enhancing Financial Reporting Quality in Village-Owned Enterprises: The Role of Organizational Competencies," Public and Municipal Finance, vol. 13, no. 2, pp. 83-97, 2024, doi: 10.21511/pmf.13(2).2024.08.
R. A. Vafaipour, M. Ghasemi, and A. R. Mohseni, "Tone management model (writing tone) and its relationship with the readability of financial reporting (thematic analysis and SEM)," 2024.
F. Barzideh, G. Bolou, and Z. Nokhbeh Fallah, "Improvement Model for Disclosure in Financial Reporting," Empirical Accounting ResearchVL - 13, no. 47, pp. 1-26, 2023.
M. Vahdani and J. Mohammadi Mehr, "The Relationship Between Integrated Financial Reporting and Profit Forecast Bias and Stock Price Informativeness," Financial Accounting and Auditing Research, vol. 16, no. 1, pp. 79EP - 103, 2024.
M. J. Eslami Zarei, M. R. Pourali, M. Samadi, and M. H. Asgari, "Audit warning test on the financial reporting quality," International Journal of Finance & Managerial Accounting, vol. 10, no. 39, pp. 101-118, 2025. [Online]. Available: http://www.ijfma.ir/article_23632.html.
Downloads
Published
Submitted
Revised
Accepted
Issue
Section
License
Copyright (c) 2025 Javad Rahmaninia (Author); Naghi Fazeli (Corresponding author); Arzoo Khosravani (Author)
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
