The Relation between Over-valuation and Disclosure of Internet Financial Information

Review of financial literature shows that valuation of firms by financial market influences management behavior and corporate actions. This study is aimed to examine whether the firms faced with over-valuation may manage their information disclosure in websites. Therefore the hypothesis was designed in the form of the existence of relation between over-valuation and disclosure of financial information in web of firms listed in Tehran Stock Exchange. To test the hypothesis we gathered data of 83 firms listed in Tehran Stock Exchange in 2010-2012 and used correlation and regression analyzes (for each of the years and the cumulative two-year) and Mean difference test. The results show that there is a negative relation between over-valuation and disclosure of financial information in web of firms listed in Tehran Stock Exchange for each of the years and the cumulative two-year. In other word، the firms faced to over-valuation، for getting benefit of over-valuation tend to support the over-valuation and disclose less financial information of year that over-valuation is accrued.