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Examining the Impact of Information Disclosure Quality and Conservatism on Accounting Information of Companies Listed on the Tehran Stock Exchange

Author

Listed:
  • Jamal Barzegari Khanagha

    (Department of Accounting, Faculty of Economic, Management and Accounting, Yazd University, Yazd, Iran,)

  • Tahere Parvare

    (Department of Business Administration, Imam Javad University College, Yazd, Iran)

Abstract

Regarding the expansion of economic activities, today,development of financial markets and stimulation of investment in capital markets, especially in Stock Exchange by natural and legal persons,are the most important tools to make the right decisions and gain expected and optimum use of financial resources, access to accurate information, timely, accurate, and realistic analysis of information. Besides, it is expected that in efficient capital markets,all the available information is quickly reflected in the prices of securities.The aim of this study is to investigate the role of financial information disclosure quality, conservative company management, andtheir mutual impact on the relevance of accounting information.As in previous studies, the impact of systematic risk (beta) and the ratio of book value to market value on the relevance of accounting information have been approved, in this study, each of these variables are considered as control variables of the model and their impact on the relevance of accounting information will be controlled. The statistical population of this study consisted of 101 companies listed on Tehran Stock Exchange during the period from 2004 to 2014, and panel model was used in this study. The results of this study showed that there is a positive and significant relationshipamong quality levels of financial information, including scores of timeliness, reliability, and final score of disclosure quality, and relevance of accounting information; while there is a negative and significant relationship between the conservatism of company's management and the relevance of accounting information. Moreover, the results of this study indicated that there is a negative and significant relationship among the mutual impactof the final score of financial information disclosure quality and the conservatism of company's management on the relevance of accounting information.

Suggested Citation

  • Jamal Barzegari Khanagha & Tahere Parvare, 2017. "Examining the Impact of Information Disclosure Quality and Conservatism on Accounting Information of Companies Listed on the Tehran Stock Exchange," International Journal of Economics and Financial Issues, Econjournals, vol. 7(5), pages 225-232.
    • Handle: RePEc:eco:journ1:2017-05-27
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    References listed on IDEAS

    as
    1. Pernilla Broberg & Torbjörn Tagesson & Sven-Olof Collin, 2010. "What explains variation in voluntary disclosure? A study of the annual reports of corporations listed on the Stockholm Stock Exchange," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 14(4), pages 351-377, November.
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    3. Simon Ho & Annie Li & Kinsun Tam & Feida Zhang, 2015. "CEO Gender, Ethical Leadership, and Accounting Conservatism," Journal of Business Ethics, Springer, vol. 127(2), pages 351-370, March.
    4. Jo, Hoje & Kim, Yongtae, 2007. "Disclosure frequency and earnings management," Journal of Financial Economics, Elsevier, vol. 84(2), pages 561-590, May.
    5. Francis, J & Schipper, K, 1999. "Have financial statements lost their relevance?," Journal of Accounting Research, Wiley Blackwell, vol. 37(2), pages 319-352.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    disclosure quality; conservatism; relevance of accounting information.;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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