Document Type : Research Paper

Authors

• hasan farajzadeh ¹
• Aَfsane Dehghan Dehnavi ²

¹ Assistant professor of Accounting in department of management and Accounting Kharazmi university

² MS in Accounting department of Kharazmi University, Tehran, Iran.

Abstract

This study investigates the spillover effect of disclosures timing of financial statement among peer firms, considering the deadlines as stipulated by the Executive Regulations on Information Disclosure for registered firms under the Securities and Exchange Organization. Findings based on the data of 242 firms listed in Tehran Stock Exchange during the years 1390 to 1401, indicate the peer effects in disclosure timing of pre-audited interim and annual financial statements, in results of peers competition in attract market attention and spillover effects due to mimic disclosure timing. In contrast, we can’t observe the spillover effects in disclosure timing of audited financial statement. Furthermore, the results provide insights into market attention competition among peer firms in release of semi-annual audited financial statements for clients audited by non-private audit firms (the Audit Organization and Mofid Rahbar Institute). This finding suggests a potential value-added role of non-private audit firms in enhancing the credibility of interim audited financial statements. The presence of a spillover effect in unaudited financial statement disclosures, contrasted with its absence in audited disclosures, may be attributed to the higher costs associated with accelerating the release of audited financial statements and the strategic timing of unaudited disclosures to achieve the desired market response. Overall, the findings highlight the influence of peer firms on corporate disclosure timing and underscore the role of imitation in shaping these decisions.

Keywords

• Disclosure Timing
• Competition
• Market Attention
• Peer Effects

Main Subjects

• stock exchange