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Asian Journal of Research in Business Economics and Management
Year : 2014, Volume : 4, Issue : 7
First page : ( 371) Last page : ( 378)
Online ISSN : 2249-7307.

The relationship between performance of companies and disclosure levels

Hosseinpoor Saeed*, Garkaz Mansour*,1, Shurvarzi Mohamadreza*

*Department of Accounting, Neyshabur Branch, Islamic Azad University Neyshabur, Iran

**Department of Accounting, Ali Abad katoul Branch, Islamic Azad University, Ali Abad katoul, Iran

1Corresponding Author

Online published on 5 July, 2014.

Abstract

Full and timely disclosure of information, is a factor makes a healthy capital markets and prevents people who somehow have access to the published information to trade and also reveal new options or remove the weak options and eventually it affects people and leads them towards the right decision. Therefore the investigation and research on the relationship between disclosure levels with some of the features of the corporate is of paramount importance, some researchers have stated that the level of disclosure information of listed corporations varies from corporate to corporate. Therefore, in this study to understand the cause of differences in the level of corporations’ disclosure and understand the behavior of corporation disclosure, we review the relations of some corporations’ features such as liquidity, profit margins and return on equity with the disclosure level. In order to test the hypotheses of the study that is determining the relationship between variables related to firm performance (Profit margin, return on equity and cash) with corporate disclosure, multiple linear regression model on a sample of 89 corporations, during the years 2006 to 2011 based on accumulated data were used. The results showed that there is a significant relationship between disclosure levels with profit margin, but there is no significant relationship between return on equity, and cash flows, with the level of disclosure.

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Keywords

Disclosure level, liquidity, profit margins, returns on equity.

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