Document Type : Research Paper
Abstract
Purpose: The purpose of this research is to investigate the relationship between geographical location and the level of disclosure in companies admitted to the Tehran Stock Exchange.
Method: For this purpose, 134 companies were investigated during the period of 2018-2022. This research is descriptive correlational in nature and applied in purpose. In this research, to measure the geographical location of companies, Google Maps was used and other information was extracted from Rahvard Novin 3 software and summarized, classified and calculated by Excel software, and finally the hypotheses were tested through EViews and Stata software at a confidence level of 0.95.
Results: The findings showed that there is a positive and significant effect between the geographic location of companies on voluntary disclosure; However, reliable evidence that the geographic location of companies has an effect on mandatory disclosure was not found at the confidence level of 0.95.
Conclusion: Correct and appropriate disclosure of financial information, including providing timely and accurate profit forecasts, by filling the gap of information asymmetry between managers and shareholders, reduces the representation problem.
Contribution: The findings show that the greater the distance of companies from the stock exchange organization, the more willing they are to voluntary disclosure to reduce remote monitoring costs and agency costs. With these interpretations, investors should pay attention to the geographical location of companies, companies can also reduce information risk by increasing transparency and voluntary disclosure, and also the stock exchange organization should make the level of information disclosure uniform for companies in different geographical distances by establishing appropriate laws.
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