THE EVALUATION OF INFLUENTIAL FACTORS IN THE LEVEL OF BANKS’ CREDIT MANAGERS TRUST PUT IN FINANCIAL STATEMENTS

This research is conducted to investigate the level of trust that private banks’ credit managers in the city of Isfahan put in corporate financial reports to make a credit decision. Financial reports are one of the key factors which affect the perception of the banks’ credit managers about the corporate managers’ trustworthiness factors. Financial reports are the main tool that banks’ credit managers can rely on to make their level of trust in corporate managers. For the purposes of this research, the necessary data is collected through the questionnaire. The data was analysed through the Spearman correlation test and liners multi variable regression using Stata software. The result of the research shows that the level of banks’ credit managers’ trust is influenced by the components of financial reporting. In particular, the history of financial reporting in a company, the accounting system of a company, the quality appearance of financial report and the amount of adjustments in financial statements of a company has significantly positive effects at the level of trust of banks’ credit managers in financial reports whereas legal accounting manipulation, fraud in financial reporting and accounting errors has negative significant effects.