Investingating of the relationship between financial reporting quality and financial managers' networking with considering the role moderating of financial performance in healthcare organizations

Document Type : Research Paper

Authors

1 Ph.D. Student of Accounting, Department of Accounting, Gheshm Branch, Islamic Azad University, Gheshm, Iran

2 Assistant Professor of Accounting, Department of Accounting, Bandar Abbas Branch, Islamic Azad University, Bandar Abbas, Iran

Abstract

Subject and purpose of the article: High-quality financial information is among the essential administrative requirements for national healthcare organizations to make prompt and optimal decisions. The present study thus seeks to investigate the impacts of networking in hospital financial managers on their financial reporting quality considering the role of financial performance.
Research method: The present study was carried out as cross-sectional research using a questionnaire. The statistical population included the financial managers of public healthcare clinics and hospitals across the country. The research sample included 311 financial managers at public healthcare clinics and hospitals. Research hypotheses were tested through regression analysis in SPSS V.25 software.
Research results: Results revealed a significant and positive relationship between financial managers’ networking and financial reporting quality (β = 0.357). The financial performance indicator was also observed to have a negative moderating role in the relationship between financial managers’ networking and financial reporting quality (β = -0.178).
Conclusion, originality, and contribution to knowledge: Financial authorities in the Ministry of Health and Medical Education are advised to hold meetings for clinic and hospital financial managers across the country (such as scientific conferences for hospital financial managers) regularly to provide the necessary context for their communication or give them incentives to join and participate in the meetings of professional financial and accounting associations.

Keywords

Main Subjects

References

اسلوب، علی؛ پاک­مرام، عسکر (1394). نقش استقرار حسابداری تعهدی در کیفیت تصمیم‌گیری مدیران مالی؛ (مطالعه موردی: دانشگاه علوم پزشکی استان آذربایجان غربی). مدیریت بهداشت و درمان، 6(2): 73-79.
اسماعیلی­کیا، غریبه؛ علی بیگی، شیما (1397). تاثیر تجربه کارکنان در بخش خصوصی بر قضاوت و تصمیم‌گیری آنان در بکارگیری حسابداری تعهدی و ادراک آنان از پیاده‌سازی آن در بخش عمومی. حسابداری دولتی، 5(1): 39-54.
لطیفی جلیسه، سلیمه؛ جعفری نیا، سعید (1400). طراحی
الگوی ارزیابی عملکرد حاکمیت شبکه‌ای وزارت بهداشت، درمان و آموزش پزشکی. مدیریت بهداشت و درمان، 12(1): 7-22.
نورانی، حسین؛ اخلاقی یزدی نژاد، اسماعیل (1402). ارایه الگوی رفع چالش‌ها و تنگنا‌های استانداردهای حسابداری بخش عمومی با استفاده از نظریه داده بنیاد. حسابداری دولتی، 9(2): 141-160.
 
Abdul Wahab EA, Jamaludin MF, Agustia D, Harymawan I. (2020). Director Networks, Political Connections, and Earnings Quality in Malaysia. Management and Organization Review, 16(3): 687-724.
Abernethy MA, Stoelwinder JU. (1991). Budget use, task uncertainly, system goal orientation and subunit performance: A test of the fit hypothesis in not-for-profit hospitals. Accounting, Organization & Society, 16: 105-120.
Baines A, Langfield-Smith K. (2003). Antecedents to management accounting change: A structural equation approach. Accounting, Organizations & Society, 28, 675-698.
Bikhchandani S, Hirshleifer D, Welch I. (1998). Learning from the Behavior of Others: Conformity, Fads, and Informational Cascades. The Journal of Economic Perspectives, 12: 151–170.
Bizjak J, Lemmon M, Whitby R. (2009). Option Backdating and Board Interlocks. Review of Financial Studies, 22: 4821–4847.
Brown JL, Drake KD. (2014). Network Ties among Low-Tax Firms. The Accounting Review, 89: 483–510.
Burgstahler D, Dichev I. (1997). Earnings Management to Avoid Earnings Decreases and Losses. Journal of Accounting and Economics, 24: 99–126.
Cheng P, Man P, Yi CH. (2013). The Impact of Product Market Competition on Earnings Quality. Accounting & Finance, 53: 137–162.
Datta S, Iskandar-Datta M, Singh V. (2013). Product Market Power, Industry Structure, and Corporate Earnings Management. Journal of Banking & Finance, 37: 3273–3285.
Dichev ID, Graham JR, Harvy CR, Rajgopal S. (2013). Earnings quality: Evidence from the field. Journal of Accounting and Economics, 56, 1–33.
Esmailikia G, Alibeigi S. (2019). Impact of employees experience in private sector on their judgment and decision making in using of accrual accounting and their perceptions from its implementation in the public sector. Governmental Accounting, 5(1): 39-43. [In Persian]
Fan Y, Gunn JL, Li C, Shao J. (2022). Financial Reporting Quality and Auditor Dismissal Decisions at Companies with Common Directors and Auditors. Contemporary Accounting Research, 39(3): 1871-1904.
Gilliam TA, Heflin F, Paterson JS. (2015). Evidence that the Zero-Earnings Discontinuity Has Disappeared. Journal of Accounting and Economics, 60: 117–132.
Godigbe BG, Chui CM, Liu C. (2018). Directors network centrality and earnings quality. Applied Economics, 50(50): 5381-5400.
Granovetter M. (2005). The Impact of Social Structure on Economic Outcomes. The Journal of Economic Perspectives, 19(1): 33-50.
Hadid W, Al-Sayed M. (2021). Management accountants and strategic management accounting: The role of organizational culture and information systems. Management Accounting Research, 50: 112-126.
Hall M. (2008). The effect of comprehensive performance measurement systems on role clarity, psychological empowerment and managerial performance. Accounting, Organizations & Society, 33, 141-163.
Hasan I, Manfredonia S. (2022). Productivity, managers’ social connections and the financial crisis. Journal of Banking & Finance, 141: 106-117.
Healy PM, Wahlen JM. (1999). A Review of the Earnings Management Literature and Its Implications for Standard Setting. Accounting Horizons, 13: 365–383.
Henseler J, Ringle CM, Sarstedt M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy Marketing Science, 43: 115-135.
Hirshleifer D, Teoh HS. (2003). Herd Behaviour and Cascading in Capital Markets: A Review and Synthesis. European Financial Management, 9: 25–66.
Jackson MO. (2008). Social and Economic Networks. Princeton: Princeton University Press.
Larcker DF, So EC, Wang CCY. (2013). Boardroom Centrality and Firm Performance. Journal of Accounting and Economics, 55: 225–250.
Latifi Jaliseh S, Jafarinia S. (2021). Network Performance Assessment in Network Governance Model of Ministry of Health and Medical Education. Journal of Healthcare Management Research, 12(1): 7-22. [In Persian]
Lieberman MB, Asaba S. (2006). Why Do Firms Imitate Each Other? The Academy of Management Review, 31: 366–385.
Macinatia MS, Anessi-Pessinaa E. (2014). Management accounting use and financial performance in public health-care organizations: Evidence from the Italian National Health Service. Health Policy, 117(1), 98-111.
Milgram S. (1963). Behavioral Study of Obedience. The Journal of Abnormal and Social Psychology, 67: 371–378.
Newell S, Swan J, Robertson M. (1998). A cross-national comparison of the adoption of business process reengineering: fashion-setting networks? The Journal of Strategic Information Systems, 7(4): 299–317.
Newman M. (2010). Networks: An Introduction. Oxford University Press, USA.
Nourani H, Akhlaqi Yazdi Nejad I. (2023). Presenting a model for solving the challenges and bottlenecks of public sector accounting standards using Grand theory. Governmental Accounting, 9(2): 141-160. [In Persian]
Omer TC, Shelley MK, Tice FM. (2019) Do Director Networks Matter for Financial Reporting Quality? Evidence from Audit Committee Connectedness and Restatements. Management Science, 66(8): 3361-3388.
Oslob A, Pakmaram A. (2015). The role of accrual accounting in the guilty of financial management decisions in West Azarbaijan University of medical sciences. Journal of Healthcare Management Research, 6(2): 73-79. [In Persian]
Roychowdhury S. (2006). Earnings Management through Real Activities Manipulation. Journal of Accounting and Economics, 42: 335–370.
Verrecchia RE. (1983). Discretionary Disclosure. Journal of Accounting and Economics, 5: 179–194.
Wentzel K. (2002). The influence of fairness perception and goal commitment on manager’s performance in the budget setting. Behavioral Research Accounting, 14(1): 247-271.
Williams JJ, Seaman AE. (2001). predicting change in management accounting systems: national culture and industry effects. Accounting, Organization & Society, 26(4): 443–460.
Zeng Y, Liu M, Ding A, Xu R, Zhang H. (2023). Cultural similarity of non-local independent directors and financial reporting quality. International Review of Financial Analysis, 90: 102-118.
Governmental Accounting
Volume 10, Issue 1
January 2024
Pages 181-192

Files

History

  • Receive Date: 20 July 2023
  • Revise Date: 27 September 2023
  • Accept Date: 14 October 2023

Share

How to cite

Statistics