The Effect of Disclosure Quality on Shareholder Behavior with Emphasis on the Biological Characteristics of the Reporting Unit

Document Type : Research Article


1 Faculty of Management and Economics, Tarbiat Modares University, Tehran, Iran

2 Faculty of Management and Accounting, Islamic Azad University, Rasht, Iran

3 Faculty of Social Science, Imam Khomeini International University, Qazvin, Iran


This study seeks to explain the effect of quality of financial information disclosure on shareholder behavior with emphasis on biological characteristics (life cycle and reputation) of the reporting unit. Given the content of information in financial statements, it is expected that increasing the quality of financial statement disclosure will affect shareholder decisions. Given that the reporting units in the introduction and growth phase of the life cycle try to gain market reputation by gaining a good reputation, take more appropriate measures to increase the quality of disclosure. The sample of the present study is the active companies of Tehran Stock Exchange including the period of 1390 to 1397. The reason for the limitation in sample selection was due to the way in which the shareholder behavior variable was measured. The results show that the quality of disclosure and the long life of the reporting unit (RU) affect the behavior of shareholders and increase the liquidity of its shares. But shareholder behavior is not affected by a good reputation. Based on the research results, reporting units can put quality information on their agenda to increase the efficiency of the capital market in Iran.


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