Effect of voluntary disclosure on value relevance of earnings per share

Subject Areas : Management Accounting

احمد خدامی پور ¹ (ندارد)
رامین محرومی ² (ندارد)

Received: 2012-04-08 Accepted : 2012-07-15 Published : 2012-12-15

Keywords: Voluntary Disclosure, Value Relevance, Earnings per Share,

Abstract :

AbstractThe purpose of this study is to investigate the effect of voluntary disclosure onvalue relevance of earnings per share. The statistical society includes companiesaccepted in Tehran Stock Exchange(TSE), and the time span of the study is from thebeginning of 2007 up to the end of 2010. Based on the assumption that an increasedfocus on the informational needs of investors should increase the quality ofaccounting information, we expect that greater voluntary disclosure levels will beassociated with greater value relevance of earnings per share as one of the mostimportant accounting information. The results show that voluntary disclosure nosignificant influence on the value relevance of earnings per share. An importantreason for this conclusion can disability of investors and other users of thefinancial reports to use the accounting information to be disclosed.