The effect of economic complexities and green economy on financial statements fraud

Abstract

Purpose This study aims to address the relationship between economic complexities (EC) and the green economy (GE) with fraud in the listed companies on the Tehran stock exchange. The authors study whether EC and GE increase the detection of financial statement fraud. Design/methodology/approach The authors used a multiple regression model based on the panel data method and fixed effect model to test hypotheses. The sample includes 1,351 companies listed on the Iranian stock exchange from 2014 to 2021. Findings The results show a negative and significant relationship between EC and GE with financial statement fraud. Originality/value Since this research is the first to address the mentioned topic in emerging markets, it provides helpful insights for financial statement users, analysts and legal entities. The study fills the literature gap and promotes knowledge regarding its relevant literature.