Investigating the Relationship between Unrecoreded Assets and Information Disclosure on Future Earning Response Coeffecetion

General accepted accounting principles have not offered accountants a tool for recording and reporting the research and development expenses as capital expenditures. These items, however, have a significant impact on the return and profitability of the firms. As a result, information recognized in the current expenses in profit and loss statements and is deleted from accounts. This research is aimed at investigating the relationship between unrecoreded assets and information disclosure the impact of this relationship on future earning response coeffecetion. Unrecorded assets are sum of research and development costs and capital costs. Informations about disclosure is collected from transparency index that is issued annualy for listed companies of Tehran stock exchange. The sample consists of 163 firms and their data were collected from 2009 to 2014. Results showed that there is positive and meaningful relationship between unrecorded assets and information transparency. Also, resulted show that for firms with high amount of unrecorded assets, the relations between current return and earning decrease by increasing disclosure level.