“EFFECTIVENESS AND ADEQUACY OF DISCLOSURE PROVISIONS IN TEHRAN STOCK EXCHANGE”

Abstract

Objectives: The purpose of this study is to find out the extent to which information disclosure laws in Iran are complied with and the IOSCO disclosure provisions, and to investigate the extent to which disclosure cases are reported in the reports of companies admitted to the Tehran Stock Exchange. We also examine the effect of communicating the new board's report to the assembly in raising the disclosure rate of those companies.

Methodology: This research was carried out in two hypotheses: first, 117 cases of compulsory disclosure in accordance with the rules of the Tehran Stock Exchange with the disclosure of IIS regulations, then the performance of the Iranian stock exchanges in disclosing 117 obligatory disclosures of the stock exchange Tehran for the years 2018 and 2019. Finally, how to disclose the information in the old and new form of the board's reports to the General Shareholders' Meeting, which was communicated to the companies since 2019, was examined through a non-parametric binomial test.

Findings: Data analysis for the first hypothesis showed that there is no match between the disclosure rules in Tehran Stock Exchange and the AIS regulations, and only 44% of the disclosure cases are consistent. Regarding the second hypothesis, companies generally comply with the mandatory disclosure requirements and analysis of the third hypothesis showed that the new form of the report of the board has had a significant impact on the level of disclosure of companies admitted to the Tehran Stock Exchange.

Restraction and uses of investigation: The findings of this research are noteworthy for Tehran Stock Exchange directors to try to comply more with the disclosure rules with the International Disclosure Regulations, and the results can be different for different time periods and at the level of the industry surveyed. To be varied