The Impact of Accounting Information Disclosure Procedure on the Information Content of Stock Price and Stock Price Risk in the Banks Listed in Tehran Stock Exchange

Hassani, Mohsen

doi:10.22034/jifb.2020.200776.1145

The Impact of Accounting Information Disclosure Procedure on the Information Content of Stock Price and Stock Price Risk in the Banks Listed in Tehran Stock Exchange

Document Type : Original Article

Author

Mohsen Hassani

Faculty Member of Payame Noor University

https://doi.org/10.22034/jifb.2020.200776.1145

Abstract

In the accounting culture, disclosure is a generic term and is classified as one of the accounting principles that covers all the important financial processes and also affects all aspects of finance. This study attempts to investigate the effect of disclosure policies of banks' accounting information on the information content of stock prices and the risk of stock price crash Iran. Following designing the information disclosure valuation indexes, the transaction information was collected from the Stock Exchange in the period of 2013-2017. The statistical sample consists of 17 banks selected by systematic elimination method resulting in totally 85 year-banks. In this research, linear regression and correlation analysis are used to investigate the hypotheses. EViews software has been used to analyze the data and test the hypotheses. What can be said in summing-up and concluding the general test of hypotheses is that if a bank has a disclosure policy of accounting information, its stocks simultaneously will have a higher return stock and lower risk of collapse. The results obtained in this study, to some extent, are consistent with the documentation referred in the theoretical framework of financial research and literature.

Keywords

Stock Price

Stock Price Crash

Simultaneity of Stock Price movement

Disclosure