Effect of voluntary disclosure on the stock prices and liquidity of listed companies in Tehran Stock Exchange

This study seeks to provide evidence on the impact of voluntary disclosure of financial information on the companyʹs stock price and liquidity is in the Tehran Stock Exchange. The sample of this research is included 55 companies in the period 2007 to 2012. Independent variable is voluntary disclosure of information that its effect check on the stock price and liquidity of listed companies in Iran. To test the hypothesis we have used a multivariate regression model. The research hypothesis test results indicate a significant positive relationship between voluntary disclosure and the stock price. The reason for the high price of shares in companies that have high rating can voluntary disclosure are first, investors have more confidence in the companies that provide more disclosure, the second reason is that management provides voluntary disclosure in the course emphasizes functions and when investors, analysts and other market participants use voluntary disclosure of information by market in line with its decision to purchase the shares of companies. Test the hypothesis also indicates a significant negative relationship between voluntary disclosure and liquidity of the stock. One could say that due to low liquidity in firms with high discretionary disclosure rating this is that due to voluntary disclosure of corporate information enhancing transparency and have been trust its shareholders, as a result, shareholders often have no reluctant to sell their shares and because of this the companyʹs shares trading has fallen because of the more voluntary disclosure scores.