The Effect of Voluntary Disclosure of Information on the Quality of Information, Decision-Making and Shareholder Behavior

Document Type : Research Article

Authors

1 Faculty of Management and Economics, Tarbiat Modares Universit, Tehran, Iran

2 Faculty of Management and Accounting, Rasht Branch, Islamic Azad University, Rasht, Iran

3 Faculty of Accounting, Tonekabon Branch, Islamic Azad University, Tonekabon, Iran

Abstract

According to the information content of financial reports, this research aims to investigate the effect of Voluntary Disclosure (VD) on the quality of information, the quality of decision and the behavior of shareholders. The population of the research is the firms listed in Tehran Stock Exchange. Based on the screening, 138 firms were selected between 2013 and 2021. The required data was extracted through the website of the stock exchange organization. The collected data were analyzed through econometric models and EViews software. According to the results, there is a significant relationship between VD, disclosure quality, decision quality and shareholders' behavior. Therefore, the amount of stock transactions can be a function of the amount of disclosure characteristics and the quality of the decision. By focusing on the shareholders, the results can provide a basis for making managers' decisions to meet their information needs and improve the transparency of the financial market.

Keywords

Main Subjects

References

Azadi, K., Azizmohammadlo, H., Tasaddi Kari, M. J., & Khedmatgozar, H. (2021). The readability effect of financial statements on stock price risk and shareholder behavior. Financial Accounting Knowledge, 8(28), 121-144
Banimahd, B., Arabi, M., & Hassanpour, S. (2017). Empirical Researches and Methodology in Accounting. Termeh, Tehran.
Botosan, C. A. (1997). Disclosure level and the cost of equity capital. Accounting Review, 323-349.
Dye, R. A., & Finn, M. (2007). Equilibrium voluntary disclosures when firms possess random multi-dimensional private information. In Essays in Accounting Theory in Honour of Joel S. Demski, (pp. 53-72). Springer, New York, NY.
Haghighat, H., Safarzadeh, M. H., & Rafiee, A. (2016). Accounting Theory, Ramzineh- Tehran.
Hamidian, M., Hajiha, Z., & Taghizade, N. (2018). The Usefulness of Voluntary Disclosure to Investors' Judgment. Economical Modeling, 11(40), 137-155.
Hassani, M., & Bashir Hosseini, S. (2010). Examining the Relationship between the Level of Disclosure of Accounting Information and the Fluctuation of the Price of Stock, in the Companies Accepted in Tehran’s Stock Market. Journal of Economic Business Research, 1(2), 75-84.
Healy, P. M., & Palepu, K. G. (1993). The effect of firms' financial disclosure strategies on stock prices. Accounting Horizons, 7, 1-11.
Hemmati, H., Amiri, E. (2018). The Effect of Disclosure Quality in Terms of Reliability and Timeliness on the Stock Trading Cost. Journal of Financial Accounting Research, 10(2), 107-134.
Hendriksen, E. S., & Van Breda, M. F. (1991). Accounting theory. Irwin, McGraw.
Howard, R. A. (1988). Decision Analysis: Practice and Promise. Management Science, 34(6), 679-695.
Jayalath, J. A. T. S., & Priyadarshanie, W. A. N. (2022). Impact of voluntary disclosure level on the value relevance of accounting information; evidence from colombo stock exchange, Sri Lanka. In CMA National Management Accounting Conference.
Jensen, M. A. (2004). Disclosure Level and cost of capital: Evidences from Danish financial market.
Kheradyar, S., Kazemi, H., Tasaddi Kari, M. J., & Yar Ahmadi, J. (2022). The Effect of Good and Bad Accounting News on Shareholder Behavior. Accounting and Auditing Research, 14(53), 67-80.
Maheshwari, S. (2000). Fundamentals of Accounting For CA Foundation Course.
Marshall, S., Brown, D., & Plumlee, M. (2009). The impact of voluntary environmental disclosure quality on firm value. In Academy of Management Proceedings. Briarcliff Manor, NY, Academy of Management.
Moradi, M. (2019). The Role of Optional Disclosure of Financial Information in the Industrial Espionage of Companies. Accounting and Auditing Studies, 8(32), 89-104.
Naderi Roushanavand, A., karami, M., Ezati, M., & Souri, A. (2020). A model for evaluating the quality of university resource allocation: Meta-Synthesis approach. Journal of Educational Planning Studies, 9(17), 252-293.
Noravesh, I., & Hosseini, S. (2009). Corporate Disclosure Quality (consist of timeliness and reliability) and Earnings Management. Accounting and Auditing Review, 16(2), 117-134.
Owusu-Ansah, S. (1998). The impact of corporate attribites on the extent of mandatory disclosure and reporting by listed companies in Zimbabwe. The International Journal of Accounting, 33(5), 605-631.
Payandehdost Masooleh, H., Kheradyar, S., Vatanparast, M.. (2024). The relationship between companies’ social sustainability performance and the quality of voluntary disclosure. Journal of Management Accounting and Auditing Knowledge, 13(49), 1-16.
Putra, D. A., & Hatta, M. (2023). Corporate Governance, Voluntary Disclosure, Earning Quality, Information Asymmetric: A Conceptual Framework. Open Access Indonesia Journal of Social Sciences, 6(3), 989-997.
Rabiee, K., Mehrani, K., & Tahriri, A. (2020). Formulation of optional disclosure quality assessment model, 9(35), 187-206.
Rezazadeh, J., Vatan Parast, M., Tasaddi Kari, M. J., & Yar Ahmadi, J. (2022). The Effect of Disclosure Quality on Shareholder Behavior with Emphasis on the Biological Characteristics of the Reporting Unit. Environmental Energy and Economic Research, 6(4), 1-14.
Rezazadeh, J. (2018). Auditing Theory. Termeh, Tehran.
Riahi-Belkaoui, A. (2004). Accounting Theory. Thomson.
Rouf, M. A., & Siddique, M. N. E. A. (2023). Theories applied in corporate voluntary disclosure: a literature review. Journal of Entrepreneurship and Public Policy, 12(1), 49-68.
Singhavi, S. S., & Desai, H. B. (1971). An empirical analysis of the quality of corporate financial disclosure. The Accounting Review, 46(1), 129-138.
Sohrabi, S., & Alavi, S. M. (2010). The attractiveness of e-commerce websites. Journal of Business Management, 2(8), 24-37.
Suharsono, R. S., Nirwanto, N., & Zuhroh, D. (2020). Voluntary disclosure, financial reporting quality and asymmetry information. The Journal of Asian Finance, Economics and Business, 7(12), 1185-1194.
Tahir, S., Ehsan, S., Hassan, M. K., & Zaman, Q. U. (2023). Does corporate governance compliance condition information asymmetries? Moderating role of voluntary disclosures. Journal of Asian Business and Economic Studies, 30(1), 2-25.
Vali Pur, H., Taleb Nia, G., & Ahmadi, R. (2014). Examining the Impact of Voluntary Disclosure Level on Value Relevance of Accounting Information of Firms Listed in Tehran Stock Exchange (TSE). Management Accounting, 7(2), 71-81.
Vatanparast, M. R., Tasaddi Kari, M. J., &Yarahmadi, J. (2019). Corporate social responsibility and shareholder trust. 4th National Conference on Management, Accounting and Economics with an emphasis on regional and global marketing, Iran.
Environmental Energy and Economic Research
Volume 8, Issue 1
February 2024
Pages 1-10

Files

Share

How to cite

Statistics