Determinants of corporate governance characteristics influencing price and non-price informative voluntary disclosures: evidence from Iran

Davani (2005) reported that one of the biggest problems facing the Iranian investors is the poor quality of annual reports which preclude comprehensive and effective analyses. Makhija and Patton (2004) also found that institutional block holders lower the extent of voluntary disclosure in the firms’...

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Main Authors:	Zandi Pour Joopari, GholamReza, Md. Taib, Fauziah, Ibrahim, Daing Nasir
Format:	Article
Language:	English
Published:	University of Malaya 2010
Subjects:	HF5601 Accounting. Bookkeeping
Online Access:	http://irep.iium.edu.my/3099/ http://irep.iium.edu.my/3099/ http://irep.iium.edu.my/3099/1/31_-_69___Gholamreza_Zandi.pdf

id	iium-3099
recordtype	eprints
spelling	iium-30992013-11-28T01:01:27Z http://irep.iium.edu.my/3099/ Determinants of corporate governance characteristics influencing price and non-price informative voluntary disclosures: evidence from Iran Zandi Pour Joopari, GholamReza Md. Taib, Fauziah Ibrahim, Daing Nasir HF5601 Accounting. Bookkeeping Davani (2005) reported that one of the biggest problems facing the Iranian investors is the poor quality of annual reports which preclude comprehensive and effective analyses. Makhija and Patton (2004) also found that institutional block holders lower the extent of voluntary disclosure in the firms’ annual reports when they enjoy direct benefits of being in control (DBC), therefore, the minority group is being expropriated. Since the Iranian Commerce Code’s requirement on information disclosure for public firms is limited to releasing only fundamental financial statements, the amount of disclosure in the Iranian firms’ annual reports are largely voluntary in nature. It is reported that the extent of information disclosure is driven by the private motivation rather than satisfying the mandated disclosure requirements. Therefore, this study intends to determine the characteristics of corporate governance that influence the voluntarydisclosures in Iran in terms of their usefulness and effects on the share prices as Price Informative Disclosures (PID) and their non-usefulness as Non-Price Informative Disclosures (Non-PID). These characteristics may help investors by presenting underlying economic substance of public firms listed on the Tehran Stock Exchange as their true financial picture may be unattainable. This study aims at depicting the Iranian stock market in which low transparency comes with low level of public confidence that results in the reluctant behaviour of investors from the private sector to buy shares. The findings, in general, suggest that the listed firms provide the market with a moderate amount of information which consists mainly of Non-PID matters. The lack of confidence among investors from the private sector is due to low level of transparency and failure to present true financial positions. University of Malaya 2010 Article PeerReviewed application/pdf en http://irep.iium.edu.my/3099/1/31_-_69___Gholamreza_Zandi.pdf Zandi Pour Joopari, GholamReza and Md. Taib, Fauziah and Ibrahim, Daing Nasir (2010) Determinants of corporate governance characteristics influencing price and non-price informative voluntary disclosures: evidence from Iran. Asian Journal of Business and Accounting, 3 (2). pp. 31-69. ISSN 1985-4064 http://umrefjournal.um.edu.my/journal/index.php?menu=view_detail&id=51
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HF5601 Accounting. Bookkeeping
spellingShingle	HF5601 Accounting. Bookkeeping Zandi Pour Joopari, GholamReza Md. Taib, Fauziah Ibrahim, Daing Nasir Determinants of corporate governance characteristics influencing price and non-price informative voluntary disclosures: evidence from Iran
description	Davani (2005) reported that one of the biggest problems facing the Iranian investors is the poor quality of annual reports which preclude comprehensive and effective analyses. Makhija and Patton (2004) also found that institutional block holders lower the extent of voluntary disclosure in the firms’ annual reports when they enjoy direct benefits of being in control (DBC), therefore, the minority group is being expropriated. Since the Iranian Commerce Code’s requirement on information disclosure for public firms is limited to releasing only fundamental financial statements, the amount of disclosure in the Iranian firms’ annual reports are largely voluntary in nature. It is reported that the extent of information disclosure is driven by the private motivation rather than satisfying the mandated disclosure requirements. Therefore, this study intends to determine the characteristics of corporate governance that influence the voluntarydisclosures in Iran in terms of their usefulness and effects on the share prices as Price Informative Disclosures (PID) and their non-usefulness as Non-Price Informative Disclosures (Non-PID). These characteristics may help investors by presenting underlying economic substance of public firms listed on the Tehran Stock Exchange as their true financial picture may be unattainable. This study aims at depicting the Iranian stock market in which low transparency comes with low level of public confidence that results in the reluctant behaviour of investors from the private sector to buy shares. The findings, in general, suggest that the listed firms provide the market with a moderate amount of information which consists mainly of Non-PID matters. The lack of confidence among investors from the private sector is due to low level of transparency and failure to present true financial positions.
format	Article
author	Zandi Pour Joopari, GholamReza Md. Taib, Fauziah Ibrahim, Daing Nasir
author_facet	Zandi Pour Joopari, GholamReza Md. Taib, Fauziah Ibrahim, Daing Nasir
author_sort	Zandi Pour Joopari, GholamReza
title	Determinants of corporate governance characteristics influencing price and non-price informative voluntary disclosures: evidence from Iran
title_short	Determinants of corporate governance characteristics influencing price and non-price informative voluntary disclosures: evidence from Iran
title_full	Determinants of corporate governance characteristics influencing price and non-price informative voluntary disclosures: evidence from Iran
title_fullStr	Determinants of corporate governance characteristics influencing price and non-price informative voluntary disclosures: evidence from Iran
title_full_unstemmed	Determinants of corporate governance characteristics influencing price and non-price informative voluntary disclosures: evidence from Iran
title_sort	determinants of corporate governance characteristics influencing price and non-price informative voluntary disclosures: evidence from iran
publisher	University of Malaya
publishDate	2010
url	http://irep.iium.edu.my/3099/ http://irep.iium.edu.my/3099/ http://irep.iium.edu.my/3099/1/31_-_69___Gholamreza_Zandi.pdf
first_indexed	2023-09-18T20:10:47Z
last_indexed	2023-09-18T20:10:47Z
_version_	1777407463360823296

Determinants of corporate governance characteristics influencing price and non-price informative voluntary disclosures: evidence from Iran

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