Voluntary Disclosure of Information on Information Content of Earnings per Share and its Book Value

Abbas Taleb Beydokhti, Mohammad Hossein Ranjbar, Samira Ghane Ghareh Loo

Abstract


This study examines the impact of information disclosure quality on information content of earnings per share and its book value in listed companies at Tehran Stock Exchange. To measure the disclosure variable, the scores given to each company that is published by Tehran Stock Exchange, have been used. To operationalize the information content, the model of earnings per share and its book value with stock price is used. Hypotheses testing were conducted using panel data statistical method for the period 2011 to 2016 applying data from 145 selected companies using systematic deletion sampling. The results showed that, there is a significant positive relationship between disclosure level and the information content of earnings per share and its book value.

Full Text:

PDF 7-12

References


Adams, Carol. (2017). Understanding integrated reporting: the concise guide to integrated thinking and the future of corporate reporting: Routledge.

Barth, Mary E, & Schipper, Katherine. (2008). Financial reporting transparency. Journal of Accounting, Auditing & Finance, 23(2), 173-190.

FASB, Financial Accounting Standards Board. (1978). Objectives of financial reporting by business enterprises: Financial Accounting Standards Board.

Gelb, David S, & Zarowin, Paul. (2002). Corporate disclosure policy and the informativeness of stock prices. Review of Accounting Studies, 7(1), 33-52.

Hassan, Omaima AG, Romilly, Peter, Giorgioni, Gianluigi, & Power, David. (2009). The value relevance of disclosure: Evidence from the emerging capital market of Egypt. The International Journal of Accounting, 44(1), 79-102.

Hossain, Mohammed, & Hammami, Helmi. (2009). Voluntary disclosure in the annual reports of an emerging country: The case of Qatar. Advances in Accounting, 25(2), 255-265.

Kothari, SP. (2000). The role of financial reporting in reducing financial risks in the market. Paper presented at the Conference Series-Federal Reserve Bank of Boston.

Lundholm, Russell, & Myers, Linda A. (2002). Bringing the future forward: the effect of disclosure on the returnsâ€earnings relation. Journal of Accounting Research, 40(3), 809-839.

Lusardi, Annamaria, & Mitchell, Olivia S. (2014). The economic importance of financial literacy: Theory and evidence. Journal of economic literature, 52(1), 5-44.

Mishari, MA, & Faisal, SA. (2011). Dose voluntary disclosure level affect the value relevance of accounting. Accounting & Taxation, 3(2), 65-81.

Noravesh, Iraj, & Hosseini, Seyed Ali. (2009). The relationship between disclosure quality (reliability and timeliness) and earnings management. Accounting and Auditing Studies, 16(55), 117-134.

Ohlson, James A. (1995). Earnings, book values, and dividends in equity valuation. Contemporary accounting research, 11(2), 661-687.

Perrini, Francesco, & Tencati, Antonio. (2006). Sustainability and stakeholder management: the need for new corporate performance evaluation and reporting systems. Business Strategy and the Environment, 15(5), 296-308.

Pilbeam, Keith. (2018). Finance & financial markets: Macmillan International Higher Education.


Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

World of Researches Publication