A study on the effect of financial reports on firms’ share value

Technology development has influenced various fields, and financial field is one of them. Applying new technologies in financial field has led to the emergence of a new kind of reporting called Internet Financial Reporting, and is used increasingly day by day due to the increasing use of internet. Adopting this kind of reporting has caused changes in the process of informing stockholders and other users. Since increasing and updating information quality can influence on decision makers to buy/sell their stock certificate, and, on the other hand, the demand for buying and selling stock certificate might influence on stock price, we aimed to evaluate the effect of internet financial reporting on the stock price of listed companies in Tehran Stock Exchange. For this purpose, a group of companies was selected as the experimental group, and some others as the control group. Then, we investigated stock price changes in both groups, and compared changes. The results indicate that internet financial reporting had no effect on the stock price in the investigated companies.