The Effect of Dynamic Competitive Capabilities on Financial Reporting Quality: The Test of Source-Based Capabilities

The Purpose of this research is the effect of the dynamic competitive capabilities on financial reporting quality. In this study, 71 companies in Tehran Stock Exchange during the period 2014 to 2018 were studied. In this study, technological capability based on Data Envelopment Analysis (DEA) was used to measure dynamic competitiveness, and the quality of accruals and voluntary accruals was used to measure the quality of financial reporting. The results of statistical analysis and testing of research hypothesis showed that technology based on source-based approach has a positive and significant effect on the quality of corporate financial reporting. This result suggests that with the development of dynamic competitiveness, the company will be more capable of creating more sustainable resources at a competitive market level, which can lead to improved quality of corporate financial reporting.