Disclosure and Firm Value: Evidence from Iran's Emergence Stock Market

Subject Areas : Management Accounting

حسین اعتمادی ¹ , رضا حصارزاده ² , مهدی محمدآبادی ³ , آمنه بذرافشان ⁴

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Received: 2012-01-08 Accepted : 2012-03-02 Published : 2012-09-10

Keywords: disclosure, Cost of Capital, economic concequences,

Abstract :

This study examines the relation between disclosure and firm value. Using financialinformation of listed company over the period 1379 to 1385, multiple regression andpanel-data analysis, our empirical results show that, after controlling for factors suchas asset size and profitability, disclosure has a highly significant and positiverelationship with firm value. Empirical results on disclosure are generally consistentwith finance-theory predictions that more public information enhances firm value byreducing the firm's cost of capital, or increasing the cash flows that accrue toshareholders, or both.