Disclosure and Firm Value: Evidence from Iran's Emergence Stock Market

This study examines the relation between disclosure and firm value. Using financial information of listed company over the period 1379 to 1385, multiple regression and panel-data analysis, our empirical results show that, after controlling for factors such as asset size and profitability, disclosure has a highly significant and positive relationship with firm value. Empirical results on disclosure are generally consistent with finance-theory predictions that more public information enhances firm value by reducing the firm's cost of capital, or increasing the cash flows that accrue to shareholders, or both.