Thesis:

Investment in Human Capital and External Reporting Quality

Financial reporting is one of the sources of information available in the capital markets, which is expected to play an effective role in the development of investment and increasing its efficiency. Increasing the quality of financial reporting is a tool to fulfill the responsibility of responding to the needs of society. The purpose of this research is to determine the relationship between investment in human resources and the quality of foreign reporting. To achieve this goal, the data of 129 companies listed on the Tehran Stock Exchange between the years 2017 to 2021 were collected and analyzed. Research method considering that two scales have been used to measure the quality of Financial reporting. Considering that two scales have been used to measure the quality of external reporting, the research method is multivariate regression and logit regression with panel data. The results of the research show that investing in human resources has led to the improvement of the quality of external reporting of companies. Employment of accounting-related labor may be reduced at the expense of investments made in other tasks that may be costly for companies. Especially for companies facing resource constraints, despite the benefits of reporting, it can lead to underinvestment in reporting performance. By improving the quality of reporting, the position of companies will increase from the point of view of attracting the trust of investors, and this will create some kind of value creation for companies.

Keywords: Keywords: Investment in Human Capital, Quality of External Reporting