Purpose – The purpose of this present study is to assess the impact of intellectual capital (IC) on fraud in listed firms’ financial statements on the Tehran Stock Exchange (TSE). In other words, this paper seeks to figure out whether IC and its components, namely, the efficiency of human capital (HC), structural capital (SC), relational capital (RC) and customer capital (CC). Design/methodology/approach – The logistic regression model is used for analyzing the material of this study. Research hypotheses are also examined using a sample of 187 listed firms on the TSE during 2011–2018 by employing the logistic regression pattern based on synthetic data technique. Moreover, some robustness checks are also used to ensure the correctness of the obtained results. Findings – The findings show a negative and significant relationship between IC and its components, including the efficiency of HC, SC, RC and CC, and fraud in financial statements. This means that by investing in the IC and its components, the amount of fraud in business firms’ financial statements decreases. Originality/value – Since few studies are carried out by existing literature, this paper is among the pioneer efforts assessing IC’s potential impact on fraud commitment. The findings apply to policymakers to improve the clarity of the business atmosphere of Iran.

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