Staff View: The impact of direct benefits of control on the price informative value of voluntary information disclosure: An empirical study of the Iranian public listed companies

The impact of direct benefits of control on the price informative value of voluntary information disclosure: An empirical study of the Iranian public listed companies

The confiscations of properties left by the Royal family and the nationalization of large corporations and public companies following the Islamic Revolution in 1979 enlarged the State’s presence and activity in every sector of the economy, either through regular government agencies or public institu...

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Main Authors:	Zandi Pour Joopari, GholamReza, Shahabi, Alireza
Format:	Conference or Workshop Item
Language:	English
Published:	2012
Subjects:	HF5601 Accounting. Bookkeeping
Online Access:	http://irep.iium.edu.my/24515/1/I2061-Gholamreza_Zandi_and_Alireza_Shahabi.pdf http://irep.iium.edu.my/24515/
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spelling	my.iium.irep.245152012-12-04T06:59:53Z http://irep.iium.edu.my/24515/ The impact of direct benefits of control on the price informative value of voluntary information disclosure: An empirical study of the Iranian public listed companies Zandi Pour Joopari, GholamReza Shahabi, Alireza HF5601 Accounting. Bookkeeping The confiscations of properties left by the Royal family and the nationalization of large corporations and public companies following the Islamic Revolution in 1979 enlarged the State’s presence and activity in every sector of the economy, either through regular government agencies or public institutions such as charity foundations in Iran. The uncertainty over business dealings after the Revolution and no true financial picture of public companies listed on the TSE affected investors’ confidence level. These factors continued to stifle the Tehran Stock Exchange (TSE) until the Iranian second economic reform program was approved by the Parliament. According to the program, the government is committed to become a free market country with dispersed ownership and to sell out its block holdings in confiscated firms to private investors through the TSE.This paper seeks whether the voluntarily information disclosed by public companies listed on the TSE where the institutional block holders possess the Direct Benefit of Control (DBC) is useful and relevant information as a proxy for presenting true financial picture. We assumed that the relevant voluntary disclosure indicates more transparency so chose the annual reports of all public companies listed on the main board of TSE in 2009. Two types of indices were constructed, an index for the extent of voluntary disclosure (VD), and an index for the price informative voluntary disclosure (PID). The results show that the institutional block holders meet the needs of market for information by disclosing a lot of information (VD) but with less-relevant content in order to cover up their perks’ consumptions. The block holders would like to show the market is efficient with no information asymmetry however such transparency is not genuine. This paper may contribute to the literature where the presence of block holders shall increase the extent of voluntary disclosure (VD) while the transparency may decline. 2012-03-03 Conference or Workshop Item REM application/pdf en http://irep.iium.edu.my/24515/1/I2061-Gholamreza_Zandi_and_Alireza_Shahabi.pdf Zandi Pour Joopari, GholamReza and Shahabi, Alireza (2012) The impact of direct benefits of control on the price informative value of voluntary information disclosure: An empirical study of the Iranian public listed companies. In: International Conference on Arts, Social Sciences & Technology (iCAST)2012, 3-4 March 2012, Park Royal Hotel, Penang.
institution	Universiti Islam Antarabangsa Malaysia
building	IIUM Library
collection	Institutional Repository
continent	Asia
country	Malaysia
content_provider	International Islamic University Malaysia
content_source	IIUM Repository (IREP)
url_provider	http://irep.iium.edu.my/
language	English
topic	HF5601 Accounting. Bookkeeping
spellingShingle	HF5601 Accounting. Bookkeeping Zandi Pour Joopari, GholamReza Shahabi, Alireza The impact of direct benefits of control on the price informative value of voluntary information disclosure: An empirical study of the Iranian public listed companies
description	The confiscations of properties left by the Royal family and the nationalization of large corporations and public companies following the Islamic Revolution in 1979 enlarged the State’s presence and activity in every sector of the economy, either through regular government agencies or public institutions such as charity foundations in Iran. The uncertainty over business dealings after the Revolution and no true financial picture of public companies listed on the TSE affected investors’ confidence level. These factors continued to stifle the Tehran Stock Exchange (TSE) until the Iranian second economic reform program was approved by the Parliament. According to the program, the government is committed to become a free market country with dispersed ownership and to sell out its block holdings in confiscated firms to private investors through the TSE.This paper seeks whether the voluntarily information disclosed by public companies listed on the TSE where the institutional block holders possess the Direct Benefit of Control (DBC) is useful and relevant information as a proxy for presenting true financial picture. We assumed that the relevant voluntary disclosure indicates more transparency so chose the annual reports of all public companies listed on the main board of TSE in 2009. Two types of indices were constructed, an index for the extent of voluntary disclosure (VD), and an index for the price informative voluntary disclosure (PID). The results show that the institutional block holders meet the needs of market for information by disclosing a lot of information (VD) but with less-relevant content in order to cover up their perks’ consumptions. The block holders would like to show the market is efficient with no information asymmetry however such transparency is not genuine. This paper may contribute to the literature where the presence of block holders shall increase the extent of voluntary disclosure (VD) while the transparency may decline.
format	Conference or Workshop Item
author	Zandi Pour Joopari, GholamReza Shahabi, Alireza
author_facet	Zandi Pour Joopari, GholamReza Shahabi, Alireza
author_sort	Zandi Pour Joopari, GholamReza
title	The impact of direct benefits of control on the price informative value of voluntary information disclosure: An empirical study of the Iranian public listed companies
title_short	The impact of direct benefits of control on the price informative value of voluntary information disclosure: An empirical study of the Iranian public listed companies
title_full	The impact of direct benefits of control on the price informative value of voluntary information disclosure: An empirical study of the Iranian public listed companies
title_fullStr	The impact of direct benefits of control on the price informative value of voluntary information disclosure: An empirical study of the Iranian public listed companies
title_full_unstemmed	The impact of direct benefits of control on the price informative value of voluntary information disclosure: An empirical study of the Iranian public listed companies
title_sort	impact of direct benefits of control on the price informative value of voluntary information disclosure: an empirical study of the iranian public listed companies
publishDate	2012
url	http://irep.iium.edu.my/24515/1/I2061-Gholamreza_Zandi_and_Alireza_Shahabi.pdf http://irep.iium.edu.my/24515/
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score	13.211869

The impact of direct benefits of control on the price informative value of voluntary information disclosure: An empirical study of the Iranian public listed companies

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