The Role of Internal Audit Competencies in Moderating the Relationship Between Risk Disclosure and Firm Value

Abstract

This study aims to examine the impact of transparency in risk disclosure on market behavior and investors’ decisions in companies listed on the Tehran Stock Exchange. The present research is applied in nature and follows a descriptive-analytical methodology. The statistical population consists of companies listed on the Tehran Stock Exchange in 2023 (1402), from which 94 companies were selected as the sample. For data collection, a questionnaire was used in the qualitative section, while secondary financial data from listed companies were employed in the quantitative section. To analyze the data, descriptive and inferential statistical methods—including factor analysis and structural equation modeling—were applied. The findings of this research indicate that accurate and transparent risk disclosure reduces information asymmetry, increases investor confidence, and improves their decision-making processes. Furthermore, the competencies of internal auditors and the manner in which risk information is presented in financial reports have significant effects on market behavior and investor reactions. The study suggests that enhancing transparency in risk disclosure and strengthening the role of internal auditors can contribute to greater stability in financial markets and increased public trust in them.