Tehran: Mehdi Faraji with the Cooperation of Iran Audit Organization Public Sector Accounting and Budgeting 2717-3135 7 1 2026 04 21 The Role of Human Capital in the Budget of Government Organizations The Role of Human Capital in the Budget of Government Organizations 1 22 235967 10.22034/psab.2026.235967 FA Seyyed Kamran Yeganegi Industrial Engineering Department, Za.C., Islamic Azad University, Zanjan, Iran 0000-0003-0421-6258 Behnoush Jovari Department of Public Management, CT.C., Islamic Azad University, Tehran, Iran 0000-0002-6426-0245 Journal Article 2025 09 11 This research was conducted to identify and explain the key factors affecting the improvement of budget and financial resource management processes within the Ministry of Economic Affairs and Finance. The primary focus is on three fundamental components: budget executive commitment, strengthening human resource capabilities, and increasing budget planning accuracy as the pillars of intelligent and sustainable financial performance. The statistical population of this study comprised 1,200 managers and official employees, from which a sample of 291 individuals was selected for analysis based on Cochran’s formula. Data collection was performed using standardized questionnaires, and analyses were conducted with high precision using SPSS and Smart PLS statistical software. The findings revealed that budget executive commitment has a direct impact on the effectiveness of resource allocation. Additionally, the role of human capital competencies in enhancing decision-making and the positive impact of planning accuracy on reducing financial variances and promoting transparency were confirmed. All research hypotheses were supported, and the final model exhibited desirable structural consistency. This study offers a novel framework for transparent and accountable budgeting that, by substituting traditional methods with evidence-based management, will lead to increased productivity, the full realization of financial equity, improved economic discipline, and guaranteed long-term sustainability in the macro-financial systems of governmental organizations, particularly within the structure of the Ministry of Finance. This research was conducted to identify and explain the key factors affecting the improvement of budget and financial resource management processes within the Ministry of Economic Affairs and Finance. The primary focus is on three fundamental components: budget executive commitment, strengthening human resource capabilities, and increasing budget planning accuracy as the pillars of intelligent and sustainable financial performance. The statistical population of this study comprised 1,200 managers and official employees, from which a sample of 291 individuals was selected for analysis based on Cochran’s formula. Data collection was performed using standardized questionnaires, and analyses were conducted with high precision using SPSS and Smart PLS statistical software. The findings revealed that budget executive commitment has a direct impact on the effectiveness of resource allocation. Additionally, the role of human capital competencies in enhancing decision-making and the positive impact of planning accuracy on reducing financial variances and promoting transparency were confirmed. All research hypotheses were supported, and the final model exhibited desirable structural consistency. This study offers a novel framework for transparent and accountable budgeting that, by substituting traditional methods with evidence-based management, will lead to increased productivity, the full realization of financial equity, improved economic discipline, and guaranteed long-term sustainability in the macro-financial systems of governmental organizations, particularly within the structure of the Ministry of Finance.

https://www.psabjournal.ir/article_235967_5394e3016049654471abd7171e0f7e46.pdf

Tehran: Mehdi Faraji with the Cooperation of Iran Audit Organization Public Sector Accounting and Budgeting 2717-3135 7 1 2026 04 21 Modeling Public Sector Accounting Ethics with Emphasis on the Role of Forensic Accounting Modeling Public Sector Accounting Ethics with Emphasis on the Role of Forensic Accounting 23 62 241994 10.22034/psab.2026.241994 FA Javad Shahnaz Khezerlou Department of Accounting. Faculty of Social Sciences. Imam Khomeini International University. Qazvin. Iran Hamid Aziz Mohammadlou Associate Professor, Department of Accounting, Faculty of Social Sciences, Imam Khomeini International University, Qazvin, Iran 0000-0002-5062-5549 Journal Article 2025 11 15 This research was conducted to design and elucidate an accounting ethics model in the public sector, with an emphasis on the capacities of forensic accounting. In terms of purpose, the research is fundamental, and in nature, it is exploratory. It was implemented using a qualitative grounded theory approach through in-depth interviews with experts. The study population comprised academic experts, forensic accountants, and official justice experts. Using purposive and snowball sampling techniques, 11 individuals were selected until theoretical saturation was achieved. The data analysis process was conducted in three stages: open, axial, and selective coding. The reliability and validity of the model were confirmed using a Delphi panel, Kendall’s coefficient of concordance, and Cronbach’s alpha. The findings revealed the extraction of 53 secondary codes classified into 12 main categories. The final research model was delineated within a paradigmatic framework comprising causal conditions (ethical compliance, accounting systems, and objectives), contextual conditions (education, ethical development, and information technology), intervening conditions (professional skills), the core phenomenon (forensic accounting standards), legal and educational strategies, and ultimately social, governmental, and organizational consequences. This model provides a strategic framework for enhancing transparency and the integrity of the financial system in the public sector. This research was conducted to design and elucidate an accounting ethics model in the public sector, with an emphasis on the capacities of forensic accounting. In terms of purpose, the research is fundamental, and in nature, it is exploratory. It was implemented using a qualitative grounded theory approach through in-depth interviews with experts. The study population comprised academic experts, forensic accountants, and official justice experts. Using purposive and snowball sampling techniques, 11 individuals were selected until theoretical saturation was achieved. The data analysis process was conducted in three stages: open, axial, and selective coding. The reliability and validity of the model were confirmed using a Delphi panel, Kendall’s coefficient of concordance, and Cronbach’s alpha. The findings revealed the extraction of 53 secondary codes classified into 12 main categories. The final research model was delineated within a paradigmatic framework comprising causal conditions (ethical compliance, accounting systems, and objectives), contextual conditions (education, ethical development, and information technology), intervening conditions (professional skills), the core phenomenon (forensic accounting standards), legal and educational strategies, and ultimately social, governmental, and organizational consequences. This model provides a strategic framework for enhancing transparency and the integrity of the financial system in the public sector.

https://www.psabjournal.ir/article_241994_4fd05ab6f4fb98be54a60bc18a01ff83.pdf

Tehran: Mehdi Faraji with the Cooperation of Iran Audit Organization Public Sector Accounting and Budgeting 2717-3135 7 1 2026 04 21 Optimization of Financial Processes in Tehran Municipality Optimization of Financial Processes in Tehran Municipality 63 103 241992 10.22034/psab.2026.241992 FA Mahdi Piri Sagharloo Ph.D in Accounting, Department of Accounting, Tonekabon Branch, Islamic Azad University, Tonekabon, Iran 0000-0001-6660-4139 Arash Tahriri Assistant Prof., Department of Accounting, University of Tehran, Tehran, Iran 0000-0002-0714-6067 Journal Article 2026 01 05 The primary objective of this study is to investigate the optimization of financial processes and the critical components influencing them, utilizing the professional perspectives of Tehran Municipality comptrollers. This investigation aims to identify pertinent issues, challenges, and thematic priorities to facilitate the development and sustainability of financial pathways. Methodologically, the study adopts an exploratory qualitative content analysis approach. Data collection was conducted through extensive in-depth interviews with Tehran Municipality comptrollers during the 2023–2024 period. The findings demonstrate that optimizing financial processes in Tehran Municipality is contingent upon several key factors: utilizing technology and information, training employees in financial procedures, monitoring process implementation, adopting continuous improvement approaches, addressing non-compliance caused by untimely program notifications, establishing a unified approach, standardizing common unit processes, developing system-oriented workflows, and reforming financial processes. Notably, the ‘unified approach’ emerged as the most influential component in optimizing the municipality’s financial operations. Ultimately, the coordinated implementation of these identified components and requirements can significantly enhance financial performance, strengthen public trust, improve organizational accountability, and provide a robust framework for the optimal utilization of municipal financial resources. The primary objective of this study is to investigate the optimization of financial processes and the critical components influencing them, utilizing the professional perspectives of Tehran Municipality comptrollers. This investigation aims to identify pertinent issues, challenges, and thematic priorities to facilitate the development and sustainability of financial pathways. Methodologically, the study adopts an exploratory qualitative content analysis approach. Data collection was conducted through extensive in-depth interviews with Tehran Municipality comptrollers during the 2023–2024 period. The findings demonstrate that optimizing financial processes in Tehran Municipality is contingent upon several key factors: utilizing technology and information, training employees in financial procedures, monitoring process implementation, adopting continuous improvement approaches, addressing non-compliance caused by untimely program notifications, establishing a unified approach, standardizing common unit processes, developing system-oriented workflows, and reforming financial processes. Notably, the ‘unified approach’ emerged as the most influential component in optimizing the municipality’s financial operations. Ultimately, the coordinated implementation of these identified components and requirements can significantly enhance financial performance, strengthen public trust, improve organizational accountability, and provide a robust framework for the optimal utilization of municipal financial resources.

https://www.psabjournal.ir/article_241992_36b916c6ff7b4d46fa07f25b3d0a6857.pdf

Tehran: Mehdi Faraji with the Cooperation of Iran Audit Organization Public Sector Accounting and Budgeting 2717-3135 7 1 2026 04 21 A Legal Analysis of the Role of Wealth Taxation in Reducing Economic Inequalities in Iran's Tax Law System A Legal Analysis of the Role of Wealth Taxation in Reducing Economic Inequalities in Iran's Tax Law System 104 131 242251 10.22034/psab.2026.242251 FA Fatemeh Gholdorostfard M.A. Student in Economic and Financial Law, Islamic Azad University, Tehran Central Branch, Tehran, Iran 0009-0001-7178-7870 Mohammad Reza Sharifani PhD in Public Law, Islamic Azad University, North Tehran Branch, Tehran, Iran 0009-0004-0672-2474 Journal Article 2025 12 27 Economic inequality in recent decades has emerged as one of the fundamental challenges to social justice and the effectiveness of Iran’s tax system. The prevailing focus of the tax structure on income- and consumption-based taxes, alongside the relative neglect of accumulated wealth, has played a significant role in the persistence and intensification of this inequality. Within this framework, wealth taxation is considered an effective instrument for strengthening the redistributive function of taxation and curbing the concentration of wealth. This study adopts a descriptive–analytical methodology and is based on an examination of legal and legislative documents, including constitutional principles, tax laws, and institutional reports, to assess the capacities and challenges associated with implementing a wealth tax within Iran’s tax law system. The findings indicate that the absence of a comprehensive wealth tax statute, the fragmentation of existing regulations, weaknesses in asset identification mechanisms, and restrictive interpretations of the constitutional principle protecting legitimate property rights constitute the primary obstacles to the realization of such a tax. Nevertheless, an analysis of Articles 3, 43, 44, and 56 of the Constitution demonstrates that wealth taxation—provided that the requirements of tax justice and the proportionality of the tax burden are respected—enjoys sufficient legal legitimacy in advancing social justice and the public interest. The novelty of this research lies in articulating a tripartite framework of legitimacy encompassing social justice, sovereign authority, and proportionality of the tax burden, as well as in proposing a gradual implementation model. The findings of this study may serve as a foundation for drafting a comprehensive wealth tax law within Iran’s legal system. Economic inequality in recent decades has emerged as one of the fundamental challenges to social justice and the effectiveness of Iran’s tax system. The prevailing focus of the tax structure on income- and consumption-based taxes, alongside the relative neglect of accumulated wealth, has played a significant role in the persistence and intensification of this inequality. Within this framework, wealth taxation is considered an effective instrument for strengthening the redistributive function of taxation and curbing the concentration of wealth. This study adopts a descriptive–analytical methodology and is based on an examination of legal and legislative documents, including constitutional principles, tax laws, and institutional reports, to assess the capacities and challenges associated with implementing a wealth tax within Iran’s tax law system. The findings indicate that the absence of a comprehensive wealth tax statute, the fragmentation of existing regulations, weaknesses in asset identification mechanisms, and restrictive interpretations of the constitutional principle protecting legitimate property rights constitute the primary obstacles to the realization of such a tax. Nevertheless, an analysis of Articles 3, 43, 44, and 56 of the Constitution demonstrates that wealth taxation—provided that the requirements of tax justice and the proportionality of the tax burden are respected—enjoys sufficient legal legitimacy in advancing social justice and the public interest. The novelty of this research lies in articulating a tripartite framework of legitimacy encompassing social justice, sovereign authority, and proportionality of the tax burden, as well as in proposing a gradual implementation model. The findings of this study may serve as a foundation for drafting a comprehensive wealth tax law within Iran’s legal system.

https://www.psabjournal.ir/article_242251_3f8874ac5566f9f48a67778fa72298e9.pdf

Tehran: Mehdi Faraji with the Cooperation of Iran Audit Organization Public Sector Accounting and Budgeting 2717-3135 7 1 2026 04 21 Examining the Relationship between Earnings Quality and Cash Holding with the Moderating Role of Public Sector Ownership Examining the Relationship between Earnings Quality and Cash Holding with the Moderating Role of Public Sector Ownership 132 155 243626 10.22034/psab.2026.243626 FA Akbar Hosseini Department of Accounting, YI.C., Islamic Azad University, Shahr Rey, Iran Hamidreza Habibi Department of Accounting, YI.C., Islamic Azad University, Shahr Rey, Iran Journal Article 2026 02 18 This study investigates the relationship between earnings quality and cash holdings while examining the moderating role of public sector ownership in listed firms. Although prior studies have documented the association between financial reporting quality and corporate liquidity, limited evidence is available from emerging capital markets regarding the governance role of public sector ownership. To address this gap, the study examines whether public sector ownership alters the relationship between earnings quality and cash holdings. The research adopts a descriptive correlational design using panel data from 163 companies listed on the Tehran Stock Exchange over the 2014 to 2024 period. Financial information was obtained from audited financial statements and market databases. The hypotheses were tested using panel multiple regression models with fixed effects and GLS estimation after diagnostic tests. The findings indicate that earnings quality has a negative and statistically significant effect on cash holdings. Furthermore, the interaction between earnings quality and public sector ownership is negative and significant, indicating that public sector ownership strengthens the negative association between earnings quality and cash holdings. The study extends the literature by providing evidence from an emerging market and demonstrates that public sector ownership serves as an effective governance mechanism influencing corporate cash holding decisions and financial reporting quality. This study investigates the relationship between earnings quality and cash holdings while examining the moderating role of public sector ownership in listed firms. Although prior studies have documented the association between financial reporting quality and corporate liquidity, limited evidence is available from emerging capital markets regarding the governance role of public sector ownership. To address this gap, the study examines whether public sector ownership alters the relationship between earnings quality and cash holdings. The research adopts a descriptive correlational design using panel data from 163 companies listed on the Tehran Stock Exchange over the 2014 to 2024 period. Financial information was obtained from audited financial statements and market databases. The hypotheses were tested using panel multiple regression models with fixed effects and GLS estimation after diagnostic tests. The findings indicate that earnings quality has a negative and statistically significant effect on cash holdings. Furthermore, the interaction between earnings quality and public sector ownership is negative and significant, indicating that public sector ownership strengthens the negative association between earnings quality and cash holdings. The study extends the literature by providing evidence from an emerging market and demonstrates that public sector ownership serves as an effective governance mechanism influencing corporate cash holding decisions and financial reporting quality.

https://www.psabjournal.ir/article_243626_faf9ff1c1f85012d2e0a5912d3e664c0.pdf

Tehran: Mehdi Faraji with the Cooperation of Iran Audit Organization Public Sector Accounting and Budgeting 2717-3135 7 1 2026 02 01 Determinants of Financial Deficit in Local Governments: Evidence from Indonesia Determinants of Financial Deficit in Local Governments: Evidence from Indonesia 156 177 244422 10.22034/psab.2026.244422 FA Heru Fahlevi Department of Accounting, Faculty of Economics and Business, Universitas Syiah Kuala, Indonesia Nur Hikmah Department of Accounting, Faculty of Economics and Business, Universitas Syiah Kuala, Indonesia Journal Article 2026 01 09 Local government deficits in Indonesia have become a pressing fiscal concern amid global economic uncertainty, raising questions about which institutional and budgetary factors most strongly drive deficit realization within a decentralized fiscal system. While prior studies have examined legislative oversight and budgetary determinants separately, integrated evidence on their simultaneous effects remains limited. This study aims to examine the influence of legislature size, budget size, budget revisions, and budget performance on the deficit realization of Indonesian local governments. Using a purposive sampling approach, the population comprised all 280 district and city governments (out of 514) that experienced a realized deficit in 2022, with data obtained from local government financial reports via the Ministry of Home Affairs. Multiple linear regression analysis was employed to test the hypotheses. The results show that budget size exerts a significant positive effect, whereas budget performance exerts a significant negative effect on deficit realization; legislature size and budget revisions show no significant influence. These findings suggest that fiscal deficits in Indonesian local governments are driven more by budgetary management than by legislative oversight capacity, offering novel evidence in a decentralized developing-country context. Accordingly, policymakers should prioritize strengthening budget formulation, execution, and performance management to curb excessive deficits and enhance fiscal sustainability and efficient public resource allocation. Local government deficits in Indonesia have become a pressing fiscal concern amid global economic uncertainty, raising questions about which institutional and budgetary factors most strongly drive deficit realization within a decentralized fiscal system. While prior studies have examined legislative oversight and budgetary determinants separately, integrated evidence on their simultaneous effects remains limited. This study aims to examine the influence of legislature size, budget size, budget revisions, and budget performance on the deficit realization of Indonesian local governments. Using a purposive sampling approach, the population comprised all 280 district and city governments (out of 514) that experienced a realized deficit in 2022, with data obtained from local government financial reports via the Ministry of Home Affairs. Multiple linear regression analysis was employed to test the hypotheses. The results show that budget size exerts a significant positive effect, whereas budget performance exerts a significant negative effect on deficit realization; legislature size and budget revisions show no significant influence. These findings suggest that fiscal deficits in Indonesian local governments are driven more by budgetary management than by legislative oversight capacity, offering novel evidence in a decentralized developing-country context. Accordingly, policymakers should prioritize strengthening budget formulation, execution, and performance management to curb excessive deficits and enhance fiscal sustainability and efficient public resource allocation.

https://www.psabjournal.ir/article_244422_8e33da2e41586306f342c2e8390c30fd.pdf