محمدعلی باقرپور ولاشانی

The study aims to investigate and comparatively identify the effects of the COVID-19 pandemic on fraudulent reporting motives in three emerging markets, namely Iran, Iraq, and Egypt. The present research method is a descriptive survey. The statistical population consists of independent auditors in three countries, and field methods and questionnaires have been used to collect data. The results indicate that COVID-19 pandemic affects management motives for committing fraud. They include respectively: sudden personal financial needs, need to receive financial resources for firm, pressure from owners in family companies, tax incentives, greed, government pressure in state-owned firms, concealing financial distress, avoidance of exclusion or deterioration in stock market, trust and self-esteem, tendency to increase compensation/payment of the management, pressure due to threats and compulsion, concealment of personal and illegal exploitation of assets, implementation or going beyond analysts’ forecasts, high levels of market competition, revenge, manager’s culture and values, management ideology or beliefs, and comparison of social status. This is the first study to investigate and compare the impact of the COVID-19 pandemic on fraudulent reporting incentives in emerging markets. Further, this study was conducted in three countries of Iran, Iraq, and Egypt, which have different contextual conditions (political, economic, cultural, etc.), indicating the impact of environmental conditions on the effects of Covid outbreaks. It can help stakeholders, including legislators,  capital market regulators and auditors in other markets, especially emerging markets, to deal with the risk of fraudulent reporting during the COVID -19 and other similar crises.

Purpose: Financial reporting is a competitive strategy among companies listed on capital markets, providing stakeholders with timely and reliable data. The sensitivity of topic drives development of increasingly sophisticated reporting languages, enhancing financial transparency. Thus, this study examined relationship between audit fees and reporting delays with tone of financial statements in companies on the Iraq Stock Exchange. Design/methodology/approach: Data from companies on the Iraq Stock Exchange were collected from 2016 to 2021, encompassing 33 companies (198 observations). A random-effects multiple regression analysis using panel data was conducted to evaluate the hypotheses. Findings: Results demonstrated audit fees, auditor skill, and auditor turnover positively influence upbeat tone of financial statements. In contrast, prolonged reporting delays lead to more negative tone. Furthermore, earnings management and the debt-to-equity ratio contributed to less optimistic tone in financial statements. Originality/value: Originality of study lies in its exploration of intersection between audit fees, reporting delays, and tone of financial statements, specifically within context of companies on the Iraq Stock Exchange. While prior research has examined relationship between audit fees and financial reporting quality, few studies have investigated how these factors influence tone of statements in emerging markets. Focus on Iraq, an economy with a unique regulatory and market environment, adds new insights into dynamics between audit-related costs, reporting timeliness, and narrative style of financial disclosures. This study also contributes to broader literature by highlighting how both audit-related factors and financial metrics impact tone of reporting, offering a nuanced understanding of corporate communication practices in an underexplored market.