Allameh Tabataba’i University Empirical Studies in Financial Accounting 2821-0166 18 70 2021 06 22 The Financial Consequences of Risk Disclosure in the Iranian Capital Market: A Case Study of Banks Listed in Tehran Stock Exchange The Financial Consequences of Risk Disclosure in the Iranian Capital Market: A Case Study of Banks Listed in Tehran Stock Exchange 27 50 12774 10.22054/qjma.2021.46908.2064 FA Ali Rahmani Professor, Accounting Department, Faculty of Social Sciences and Economics, University of Alzahra, Tehran, Iran Gholamreza Solimani Associate Professor, Accounting Department, Faculty of Social Sciences and Economics, University of Alzahra, Tehran, Iran Mandana Taheri Assistant Professor, Faculty of management and accounting, University of Allameh Tabataba'i.Tehran.Iran 0000-0001-7741-7208 Journal Article 2019 10 22 Interest groups, especially shareholders have demand for Disclosure and Reporting in the capital market and they change their expectations of risk and return based on disclosure of information. Therefore, disclosure has economic consequence for companies that according to the empirical literature, cost of capital, information asymmetry and stock liquidity, there are three important consequences of disclosure and reporting. One of the disclosures of companies is risk disclosure in the capital market, especially for banks and financial and credit institutions which it require in the form of financial statements and the Report of the Board to the Stock Forum based on complies with the regulations of the Stock Exchange and the Central Bank of Iran. In this paper, we survey the effect of risk disclosure in bank listed in stock market on cost of capital, information asymmetry and stock liquidity as three important of risk disclosure consequences. For this aim, by using the annual data of 18 banks listed in Tehran Stock Exchange during the years 1390 to 1395 we estimate simple regression with panel data. The results show the main hypothesis (there is a consequential risk disclosure of the banks listed in the stock market), confirms. In addition, risk disclosure has a positive and significant relationship with cost of capital and information asymmetry, but there is no significant relationship between risk disclosure and stock liquidity. Interest groups, especially shareholders have demand for Disclosure and Reporting in the capital market and they change their expectations of risk and return based on disclosure of information. Therefore, disclosure has economic consequence for companies that according to the empirical literature, cost of capital, information asymmetry and stock liquidity, there are three important consequences of disclosure and reporting. One of the disclosures of companies is risk disclosure in the capital market, especially for banks and financial and credit institutions which it require in the form of financial statements and the Report of the Board to the Stock Forum based on complies with the regulations of the Stock Exchange and the Central Bank of Iran. In this paper, we survey the effect of risk disclosure in bank listed in stock market on cost of capital, information asymmetry and stock liquidity as three important of risk disclosure consequences. For this aim, by using the annual data of 18 banks listed in Tehran Stock Exchange during the years 1390 to 1395 we estimate simple regression with panel data. The results show the main hypothesis (there is a consequential risk disclosure of the banks listed in the stock market), confirms. In addition, risk disclosure has a positive and significant relationship with cost of capital and information asymmetry, but there is no significant relationship between risk disclosure and stock liquidity. https://qjma.atu.ac.ir/article_12774_d0aae9539e4dd0bd618e5d2598f18707.pdf