Validation of the Model of Financial Reporting Transparency and Accountability in Municipalities from the Perspective of Experts

Hamid  Salarzehi; Habib Piri; Reza  Sotudeh; Abbasali  Haghparast

Authors

Hamid Salarzehi Department of Accounting, Zah.C., Islamic Azad University, Zahedan, Iran Author https://orcid.org/0009-0006-4796-9849
Habib Piri Department of Accounting, Zah.C., Islamic Azad University, Zahedan, Iran https://orcid.org/0009-0009-4290-9574
Reza Sotudeh Department of Finance and Accounting, Faculty of Humanities, Meybod University, Meybod, Iran Author https://orcid.org/0000-0002-9143-1820
Abbasali Haghparast Department of Accounting, Zah.C., Islamic Azad University, Zahedan, Iran Author https://orcid.org/0009-0003-8349-7947

Keywords:

credit allocation, corporate bank customers, integrated approach, credit risk, profitability assessment

Abstract

The present study was conducted with the aim of designing a credit allocation model for corporate bank customers using an integrated approach to credit risk and profitability assessment, with Bank Tejarat as the case study. In terms of purpose-based classification, this study is applied research; in terms of the nature and method of data collection and analysis, it adopts a mixed approach combining quantitative analysis and mathematical modeling. The statistical population consisted of 823 corporate customers of Bank Tejarat categorized into 35 “single-beneficiary” groups. These companies were examined and analyzed over the period from 2019 to 2024. Data envelopment analysis (DEA) was used to measure customer efficiency, neural network modeling and logistic regression were applied to predict credit risk, and multi-criteria decision-making techniques were employed to integrate these two dimensions. The overall findings indicated that the proposed integrated model has a high capacity for ranking customers and can be used as an effective tool in the bank’s credit decision-making process.

References

[1] Z. Tashakkor, "Duties of municipalities in Iran from conception to reality," Municipalities Monthly, no. 2, 1999.

[2] M. Mazini, An examination of the structure of urban management in Iran. Tehran, 1999.

[3] A. State and O. Employment, "Collection of objectives, duties, and organizational charts of ministries and other governmental organizations," State Administrative and Employment Organization, Office of Organization and Administrative Methods, Tehran, 1999.

[4] J. Babajani, "Evaluation of the accountability responsibility of the accounting and reporting system of the Government of the Islamic Republic of Iran," Allameh Tabataba'i University, 1999.

[5] J. Babajani, "The role of accountability responsibility in the conceptual framework of governmental accounting," Auditor Quarterly, vol. 2, no. 7, 2000.

[6] R. Sotoudeh, M. Faghani, and A. Pifeh, "Examining the ability of the Supreme Audit Court from the perspective of financial accountability to users," Audit Knowledge Quarterly, vol. 20, no. 3, pp. 59-84, 2020.

[7] R. Sotudeh, M. Faghani, and A. Pifeh, "Examination of the ability of internal processes of the Supreme Audit Court to take responsibility for users," Governmental Accounting, vol. 7, no. 1, pp. 193-208, 2021, doi: 10.30473/gaa.2020.47065.1284.

[8] R. Sotoudeh, A. Tavassoli, and H. Piri, "Designing and validating a multidimensional model of professional ethics for the Supreme Audit Court," Value and Behavioral Accounting, vol. 7, no. 13, pp. 256-297, 2022.

[9] A. A. Tavassoli, R. Sotudeh, and H. Piri, "Planning and validation of multi-dimensional model of professional ethics of the Supreme Audit Court," vol. 7, no. 13, pp. 256-297, 2022. [Online]. Available: http://aapc.khu.ac.ir/article-1-1114-fa.html.

[10] K. Shahbazi and Z. Kalantari, "Effects of monetary and fiscal policy shocks on housing market variables in Iran: An SVAR approach," Economic Research and Policy Quarterly, vol. 20, no. 61, pp. 77-104, 2012.

[11] N. Habibi, Administrative corruption: Effective factors and methods of combating it. Vothaghi, 1996, p. 115.

[12] S. Sheari and M. Hasani Alqar, "Investigating the effect of managerial ability on tax avoidance," Accounting Knowledge, vol. 8, no. 1, pp. 107-134, 2017.

[13] J. Titani, "Analyzing the Impact of Government Tax Policies on the Motivation for Transparent Financial Reporting in Companies," in 21st International Conference on Management and Human Sciences Research in Iran, Tehran, 2025. [Online]. Available: https://civilica.com/doc/2398621/.

[14] H. Bessembinder, W. F. Maxwell, and K. Venkataraman, "Market Transparency, Liquidity Externalities, and Institutional Trading Costs in Corporate Bonds," (in English), Journal of Financial Economics, 2025.

[15] A. Majid Abdollahi, G. Mansourfar, and H. Didar, "The impact of external transparency on performance and disclosure of social responsibility," Quarterly Journal of Asset Management and Financing, vol. 13, no. 4, pp. 17-34, 2025. [Online]. Available: https://amf.ui.ac.ir/article_29407.html.

[16] Y. Chen and Z. Li, "The role of momentum accounting in enhancing financial transparency in innovative companies," Asian Journal of Accounting Research, vol. 10, no. 1, pp. 25-47, 2025.

[17] Y. Ren, X. Liu, and Y. Zhu, "Can the development of digital finance and information transparency improve enterprise investment efficiency?," Finance Research Letters, vol. 73, p. 106597, 2025, doi: 10.1016/j.frl.2024.106597.

[18] Z. Wu and Y. Dai, "Signal of Financial or Performance Transparency? The Impact and Mechanisms of Nonprofit Transparency on Donation Willingness," Public Performance & Management Review, vol. 48, no. 3, pp. 675-704, 2025, doi: 10.1080/15309576.2025.2465750.

[19] A. Alassuli, N. S. Thuneibat, A. Eltweri, K. Al-Hajaya, and K. Alghraibeh, "The Impact of Accounting Digital Transformation on Financial Transparency: Mediating Role of Good Governance," Journal of Risk and Financial Management, vol. 18, no. 5, 2025, doi: 10.3390/jrfm18050272.

[20] A. Al-Omush, A. Almasarwah, and A. Al-Wreikat, "Artificial intelligence in financial auditing: redefining accuracy and transparency in assurance services," EDPACS, pp. 1-20, 2025, doi: 10.1080/07366981.2025.2459490.

[21] E. Kokogho, O. C. Onwuzulike, B. M. Omowole, C. P. M. Ewim, and M. O. Adeyanju, "Blockchain technology and real-time auditing: Transforming financial transparency and fraud detection in the Fintech industry," Gulf Journal of Advance Business Research, vol. 3, no. 2, pp. 348-379, 2025, doi: 10.51594/gjabr.v3i2.88.

[22] S. R. Hashemi Jouybari, S. M. Hosseini, and H. Abedi, "An Integrated Framework of Artificial Intelligence and Blockchain for Enhancing Transparency and Efficiency in Financial Reporting and Auditing of Islamic Banks in the Digital Economy Context," 2025.

[23] S. A. Hasan, P. Piri, and P. Chalaki, "Designing an optimal decision-making model for investors: Integrating artificial intelligence and financial reporting transparency," Journal of Asset Management and Financing, vol. 14, no. 2, pp. 1-24, 2026, doi: 10.22108/amf.2025.143308.1934.

[24] N. Osanlou and M. H. Esmaili Khatibani, "Investigating the impact of environmental, social and corporate governance on green innovation of companies listed on the Tehran Stock Exchange, considering the mediating role of financial constraints and environmental awareness of managers," Strategic Management Accounting, vol. 2, no. 3, pp. 1-24, 2025, doi: 10.22034/smajournal.2025.544479.1132.

[25] R. Sotoudeh, A. Haghparast, and A. Hirad, "Management accounting and resilience economics model for sustainable development of manufacturing companies," Strategic Management Accounting, vol. 1, no. 1, pp. 40-64, 2024, doi: 10.22034/smajournal.2025.511901.1003.

[26] R. Sotudeh and M. Mirshekari, "Explaining the Investment Development Model with Emphasis on the Management Accounting Unit," Strategic Management Accounting, vol. 2, no. 4, pp. 1-21, 2025, doi: 10.22034/smajournal.2026.572829.1287.