Accounting and Auditing Research

Accounting and Auditing Research

Product Market Competition, Board Composition and Disclosure Quality: Evidence from Tehran Stock Exchange

Document Type : Original Article

Authors
Saied Ghorbani
Marzieh Movahed Majd
Mohammad Monfared Maharloie
10.22034/iaar.2013.104537
Abstract
According to the existent literatures, product market competition has been considered as an external governance mechanism and a critical factor in adopting decisions of information disclosure by companies. The purpose of this paper is to examine the relationship between product market competition, board composition and disclosure quality for firms listed in Tehran Stock Exchange (TSE). The sample consists of 90 firms during 2003 to 2009 and the statistical method of analysis is the Logistic Regression Model. The findings show that product market competition has strategic effect and displays an U-shaped relationship with disclosure quality of information. From governance effect view, the results indicate that there isn’t significant relationship between percentage of board of directors and disclosure quality; also, product market competition didn’t improve this relationship. studying control variables, we found that return of assets have positive significant relationship with disclosure quality but debt ratio and firm size have negative one. However, statistically there is a weak relationship between firm size and disclosure quality.
Keywords
Product Market Competition
Board Composition
Disclosure Quality
Tehran Stock Exchange (TSE)
Accounting and Auditing Research
Volume 5, Issue 19
Autumn 2013
Pages 92-105