To Survey the Relation between Financial Restatement and Information Asymmetry (Evidences from companies listed in Tehran Stock Exchange)

The aim of this paper is to investigate the relationship between the restatement of information and information asymmetry amongst the companies listed in Tehran Stock Exchange. In this paper, the extent of the relation between leverage, return on the assets, size of the company, operating cash flow as control variables with information asymmetry before and after annual general meetings has been tested.To test the hypothesis, totally 76 listed companies in Tehran Stock Exchange in the time period of 5years (from 2009 to 2013) have been selected randomly in panel structure.The results show a significant and positive relationship between information asymmetry before general annual meeting and prior period adjustment as well as negative significant relationship with size of the companies.While, the significant relationship between information asymmetry before the meeting and the other variables including return on the assets, leverage and operating cash flow is not approved.Furthermore, no significant relationship between information asymmetry after general annual meeting and prior period adjustment and the other variables such as size of the companies, leverage status, return on the assets and operation cash flow has been approved.