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Examining Financial Leverage, Profitability and Firm Life Influencing Nonfinancial Information Disclosure Quality

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  • Reza Zare

    (Darion Branch, Islamic Azad University, Darion, Iran)

  • Hoda Kiafar

    (Accounting Department, Marvdasht Branch, Islamic Azad University, Marvdasht, Iran)

  • Fatemeh Rasouli

    (Accounting Department, Marvdasht Branch, Islamic Azad University, Marvdasht, Iran)

  • Leila Sadeghi

    (Accounting Department, Islamic Azad University Fars Science and Research Branch, Iran)

  • Sadegh Behbahani

    (Accounting Department, Marvdasht Branch, Islamic Azad University, Marvdasht, Iran)

Abstract

Modern accounting emphasizes on nonfinancial measures as a device to compensate the financial measures’ weakness and the financial measures are recommended to be used with nonfinancial ones. This study is to examine the factors influencing the nonfinancial information disclosure quality in the firms listed in Tehran stock exchange. So the necessary information were gathered from 102 firms listed in Tehran stock exchange in 2008–2012. The regression analysis was used to test the hypotheses. A model including 50 indexes based on Iran accounting standards and other regulations concerning disclosure were used to measure nonfinancial information disclosure quality. The findings indicate firm life and profitability have positive and significant effect on nonfinancial information disclosure quality and financial leverage has negative and significant effect on it.

Suggested Citation

  • Reza Zare & Hoda Kiafar & Fatemeh Rasouli & Leila Sadeghi & Sadegh Behbahani, 2013. "Examining Financial Leverage, Profitability and Firm Life Influencing Nonfinancial Information Disclosure Quality," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 6(6), pages 163-175, December.
    • Handle: RePEc:dug:actaec:y:2013:i:6:p:163-175
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    References listed on IDEAS

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