Pages: 36-48

Abstract

Firms normally disclose their information to enhance the credibility of their financial reports, reduce information asymmetry, and control the cost of capital. The disclosure of information for any reason other than legal obligations is called voluntary disclosure. While voluntary disclosure is costly, it seems to have positive impacts on corporate value and corporate risk. In this paper, we study voluntary disclosure as independent variable and corporate value and corporate risk as dependent variables. The statistical population of this research consists of the firms listed on Tehran Stock Exchange. The samples of this study are 99 firms listed on Tehran Stock Exchange during 2007-2012. The hypotheses were examined by panel data method. The results of this study confirmed that a significant relationship exists between voluntary disclosure and corporate value and between voluntary disclosure and corporate risk.