Digital Transformation and Accounting Information Quality: The Moderating Role of Environmental Uncertainty

Abstract

This study aimed to explain the moderating role of environmental uncertainty in the relationship between digital transformation and accounting information quality among firms listed on the Tehran Stock Exchange. This applied study employed a descriptive-correlational and ex post facto research design based on panel data. The statistical population consisted of all firms active on the Tehran Stock Exchange from 2020 to 2024. After applying systematic elimination criteria, 106 firms were selected as the final sample. Accounting information quality was measured through discretionary accruals using the Jones model. Digital transformation was operationalized as a dummy variable indicating whether the firm had invested in technology and digitalization, and environmental uncertainty was measured based on sales fluctuations. The research hypotheses were tested using multivariate regression analysis with panel data and fixed-effects estimation in EViews 8. The first regression model was statistically significant, with an F-statistic of 14.536 and a significance level of 0.000. The coefficient of determination and adjusted coefficient of determination were 0.425 and 0.421, respectively. Digital transformation had a positive and statistically significant effect on accounting information quality, as indicated by a coefficient of 0.596, a t-statistic of 3.857, and a significance level of 0.001. The second regression model was also statistically significant, with an F-statistic of 15.251 and a significance level of 0.001. The adjusted coefficient of determination was 0.382. The interaction effect between digital transformation and environmental uncertainty was positive and statistically significant, with a coefficient of 0.251, a t-statistic of 2.221, and a significance level of 0.034. The findings indicate that digital transformation enhances accounting information quality by improving transparency, reducing information asymmetry, and limiting opportunistic managerial behavior. Environmental uncertainty also significantly moderates this relationship, highlighting the importance of digital technologies for maintaining accounting information quality under unstable business conditions.