Examining the Impact of Voluntary Disclosure Level on Value Relevance of Accounting Information of Firms Listed in Tehran Stock Exchange (TSE)

This paper investigates Impact of Voluntary Disclosure Level on Value Relevance of Accounting Information, specifically, earnings and book values of Firms Listed in Tehran Stock Exchange (TSE). Based on the assumption that an increased focus on the informational needs of investors should increase the value relevance of the information contained in financial statements, As a consequence, we expect that greater voluntary disclosure levels among companies listed on the TSE will be associated with greater value relevance in earnings and book value information for investors. Statistical sample includes 71 companies during 2007 to 2011. Statistical technique used to test the hypotheses is the Multivariate Regression. The results for the price and returns models provide evidence that earnings and book values are significant factors in the valuation of firms Listed in TSE. Other results show that increasing the voluntary disclosure level, the information content of the book value increased; on the other hand the information content of earnings is the same information at all voluntary disclosure levels.