Title: Financial disclosure on the internet and overvalued equity: the case of Iran

Authors: Seyed Yaser Razavi; Morteza Shafiee Sardasht

Addresses: Faculty of Accounting, Payame Noor University, No. 82, Emamt 33, Emamt Blv, Mashhad, Iran ' Faculty of Management and Accounting, Islamic Azad University, Mashhad Branch, No. 82, Emamt 33, Emamt Blv, Mashhad, Iran

Abstract: Due to the advantages of high stock price, managers usually take actions to explain watered stock. Therefore, at least, they disclose less information about financial aspects of the corporation. The objective of this study is to provide evidence on the relationship between overvalued equity and the disclosure of financial information via the internet in the Tehran Stock Exchange (TSE). To this end, using 83 companies' data, it was tried to examine the relationship between the variables. According to correlation analysis (Pearson and partial), regression analysis (annual and biennial) and t-test, a negative significant relationship between overvalued equity and internet disclosure of financial information in the Iranian companies is determined. That is to say, when companies experience overvaluation, Iranian managers disclose less information through the company's website too. Also, the results reveal the existence of significant and positive relationship between previous internet disclosure of financial information and internet disclosure of financial information.

Keywords: internet disclosure; overvalued equity; internet-based corporate disclosure index; Iran; financial disclosure; overvaluation; web-based disclosure.

DOI: 10.1504/IJAMS.2016.078503

International Journal of Applied Management Science, 2016 Vol.8 No.3, pp.183 - 206

Received: 21 Apr 2015
Accepted: 18 Oct 2015
Published online: 22 Aug 2016 *

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