Iranian Journal of Finance

Abstract Sustainable Communications (SC) is a strategic approach in industries, especially in high-risk sectors, and has gained great importance today. This study explores the non-linear dynamics (U-shaped and S-shaped) between sustainable communication (SC) and financial performance (FP) in high-risk industries, including oil and gas, petrochemicals, mining, and transportation, listed on the Tehran Stock Exchange and Iran Fara Bourse over the period 2015–2024 (48 companies). Utilizing panel regression, cross-sectional regression, quantile panel regression, and Granger causality tests, the analysis integrates organizational learning, supply chain perspectives, and stakeholder theory. Findings confirm U- and S-shaped relationships, suggesting that moderate SC enhances FP, whereas excessive communication may undermine stakeholder trust, with sustained efforts yielding long-term benefits. Financial sector development amplifies the positive effects of SC, while ESG rating divergence exacerbates the adverse impacts of over-communication. Sustainability reporting requirements reinforce the benefits of balanced SC. Quantile regressions reveal heterogeneity, with stronger SC effects in high-performing firms. Granger causality tests indicate unidirectional causality from SC to FP. Industry-specific analyses highlight superior performance in petrochemicals and challenges in transportation. The study offers practical implications for optimizing SC, strengthening financial sector development, and standardizing ESG reporting. Future research should incorporate granular ESG data and dynamic modeling approaches.

Abstract The primary objective of this study is to develop a predictive model for money laundering risk in Iranian listed firms. Initially, firm-level money laundering risk is measured using auditor assessments of anti-money laundering (AML) activities disclosed in annual audit reports. Subsequently, a quantitative modeling approach is employed, using financial and governance-related variables identified in prior research. To validate the quantitative findings, a qualitative approach based on grounded theory is also applied to identify additional explanatory factors. This research follows a mixed-methods design, incorporating both quantitative and qualitative phases. In the quantitative phase, a panel logit regression model is estimated using data from 1,680 firm-year observations covering the period 2012–2023. Independent variables include firm size, return on equity, leverage, investment opportunities, board independence, and board size. In the qualitative phase, semi-structured interviews were conducted with 10 experts to identify key risk factors, followed by the design and administration of an 18-item questionnaire distributed to 110 professionals. Exploratory factor analysis was then used to extract latent variables. The quantitative analysis reveals significant relationships between money laundering risk and several variables, such as firm size (positive), return on equity (negative), leverage (positive), and board independence (negative). The qualitative analysis identifies three core factors: (1) organizational culture and employee training, (2) corporate governance, and (3) a composite factor comprising compliance, organizational complexity, financial performance, firm size, and capital structure. Together, these factors explain over 50% of the variance in expert responses. The convergence of results from both methodological approaches confirms the robustness of the proposed model. Corporate governance indicators—particularly board size and independence—alongside financial attributes such as firm size, profitability, and capital structure, are found to be significant predictors of firm-level money laundering risk. The findings underscore the importance of strengthening internal control mechanisms and compliance structures in reducing money laundering risk.

Abstract The main goal of managing for-profit companies is to maximize shareholders' wealth, and to achieve it, management needs to make decisions regarding the sources and uses of capital. Different theories have been tried to explain the relationship between capital structure and performance, and have estimated a different relationship for financial leverage and company performance in different conditions. Financial leverage and operational leverage are two factors that influence the performance and macro policies of the company in terms of the profitability process. This research examines the effect of operational leverage and financial leverage on the company's profitability and financial distress, and finally examines the effect of replacing these two Leverages to maximize the profitability process and reduce the risk of financial distress. The sample includes 263 companies listed in the Tehran Stock Exchange and the Iran OTC Company from 2011 to 2021, which have passed the four screening factors of this study. The fixed effect panel regression method was used to test the first and second hypotheses. The results indicate a positive relationship between operational leverage and the profitability of companies, while the relationship between financial leverage and the profitability of companies is negative. On the other hand, both Leverages increase the risk of financial helplessness. To improve profitability, operational leverage can be replaced by financial leverage. Increasing operational leverage and reducing financial leverage can be used as a tool to grow the company's profitability; however, to reduce the helplessness of the companies and improve the profitability process, operational leverage can be replaced with financial leverage. Flexibility in financing companies is more than flexibility in the operational sector; that is why replacing operational leverage with financial leverage is more appropriate to improve profitability and reduce the risk of financial helplessness.

Abstract The purpose of this study is to investigate the impacts of external and internal organizational factors of the privatization process on management accounting practices and the impact of these changes on the financial performance of listed companies on Tehran Stock Exchange that more than 51% of the companies' shares have been transferred to the private sector. This research, based on institutional and structural theories, provides an exhaustive explanation of changes in management accounting practices by considering the conflict of the internal and external factors and the role of the human factor in the privatization process. In this study, according to the general policies of Article 44 of the Constitution, to increase competitive advantage, management accounting has been used as a mediating variable in the relationship between privatization and financial performance. To this research, 60 companies which their ownership transferred to the private sector during the period from 2002 to 2018 were investigated. To collect data, questionnaire survey and companies financial statements were adopted and to test the hypothesis Structural equation An investigating of the impacts of external and internal organizational 19 modeling using Smart PLS software. The findings of the study show that external and internal organizational factors in the privatization process, have a significant impact on the management accounting practices that these changes effects on the financial performance of companies. The result is that in the privatization process, the external and internal organizational factors and contradiction of the incompatibility of these factors with the human factor provide the conditions for changes in management accounting practices that effect on the financial performance of companies. The results of the current study could be useful for the effectiveness of management accounting changes and their impact on the financial performance of companies in the merger and acquisition processes in developing countries.

Abstract This study aimed to investigate the relationship between voluntary disclosure and earnings management and financial performance during the life cycle of the listed companies in Tehran Stock Exchange. The statistical population of the study included all listed companies in Tehran Stock Exchange since 2013-2018. In this study, earnings management, the financial performance of the companies (including return on equity, returns on assets, Tobin Q ratio, economic value-added, and refined economic value added) were the dependent variables, and the level of voluntary disclosure was the independent variable and the life cycle of the company was considered as the moderating variable. Also, in order to test the research hypotheses, a linear multivariate regression model using combined data was used. The results showed that earnings management and financial performance indicators have a significant relationship with voluntary disclosure over the life cycle. Accordingly, an increase in the level of voluntary disclosure increased the company's performance. Also, the results of the study indicated that the company's life cycle mediates the relationship between the level of voluntary disclosure and the company's performance.