Disclosure Quality and Corporate Governance: Evidence from Iran

Abstract

This study explores the relationship between disclosure quality and corporate governance in Tehran stock exchange (TSE). In this study, the mechanisms of corporate governance are consist of internal audit, ownership concentration, CEO duality, board independence, board size, board chairman independence, and chairman tenure. On the other hand, the measure of disclosure quality calculated by the Stock Exchange Organization (SEO) has been used as a proxy for disclosure quality. Using a sample of 83 accepted firms on Tehran Stock Exchange (TSE) over the period from 2005 to 2010, the results reveal that there is a significant and positive relationship disclosure quality and each of independent variables such as internal audit, ownership concentration, CEO duality, board independence, and chairman independence, but no association between disclosure quality and each of board size and chairman tenure.