Document Type : Original Article
Authors
1
1. Ph.D. in Political Science of Iranian Issues, Lecturer, Mahrat National University, Ilam, Iran
2
2. Assistant Professor, Technical Engineering Department, Mahrat National University, Tehran, Iran. fhoushmand@nus.ac.ir
3
3. Ph.D., Department of Accounting, Faculty of Social and Economic Sciences, AlZahra University, Tehran, Iran, Lecturer at National Skill University. Email: t.jamshidi@alzahra.ac.ir
10.22080/jpir.2026.30570.1500
Abstract
Purpose: Economic sanctions have been one of the main factors undermining the financial structure of Iranian firms over the past decades. This study aims to examine the impact of sanction policies and international relations on the financial transparency and financial health of Iranian chemical industry companies.
Methodology: The research is applied–developmental in purpose and descriptive–analytical in method, following a causal–comparative approach. The statistical population includes all chemical companies listed on the Tehran Stock Exchange during 2013–2023. Data were collected from official sources such as CODAL, the Central Bank of Iran, and IMF databases, and analyzed using the dynamic panel regression model (System GMM). Additionally, a thematic analysis based on semi-structured interviews with 15 senior financial managers and auditors was conducted.
Findings: Quantitative results revealed that the intensity of sanctions has a significant negative effect on financial transparency (β=-0.315) and financial health (β=-0.362). In contrast, improved international relations positively and significantly influence both dependent variables. Qualitative findings showed reduced voluntary disclosure, increased reporting costs, and weakened external controls under sanctions, while firms adopting digital reporting systems and stronger internal controls demonstrated higher resilience.
Conclusion: Sanctions weaken financial transparency and health by increasing compliance costs, restricting access to global banking systems, and eroding investor confidence. Strengthening international relations, adopting FATF standards, and developing digital financial reporting systems can play a moderating and restorative role in improving transparency and financial stability
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