Providing a Model for Measuring the Transparency of the Information Environment in the Stock Market Using the Qualitative Characteristics of Financial Information

For the first time, the present study has presented a mathematical model for measuring the transparency of the information environment in the Iranian stock market using the qualitative characteristics of accounting information. The research method is a mixed research method.

First, a questionnaire was prepared to assess the importance of each of the desired features and was submitted to academic and capital market experts for a survey. Shannon entropy method has been used to analyze these views. To assess the validity of the research model, 125 companies listed on the Tehran Stock Exchange and real data from 1392 to 1398 and panel regression method with random effects have been used.

Results show that the qualitative characteristics of accounting information in the proposed mathematical model of the research have a significant effect on stock mispricing (inverse measure of transparency of the information environment) and this indicates the validity of the proposed model of research in the Iranian capital market.

The qualitative characteristics of accounting information have the necessary capability to explain the information transparency of firms and the proposed research model has provided a suitable coefficient and combination for this in the Iranian capital market.