Corporate governance and financial information disclosure in developing coubtry

The main objective of this study is to identify the extent of corporate accounting information disclosure in an emerging economy. This study also addresses the determinants of such reporting practices with the interaction of independent board and a large audit firm. Three self-constructed checklists were used to measure the extent of mandatory and voluntary disclosure. The results were analyzed in total (as overall disclosure). Data were obtained from the annual report of 915 listed companies in the Iranian stock market from 2010-2015. A dynamic panel generalized method of moments (GMM) was applied to address endogeneity issue and to control for dynamic endogeneity, unobservable heterogeneity, and simultaneity. Findings revealed that the level of total mandatory disclosures by the all listed companies in Iran are high, while the level of disclosing IAS/IFRS and voluntary information by all of the listed firms are low. Furthermore, data of the overall level of disclosing information by all of the listed firms are 46.69%, suggesting a low level of compliance. The findings also reveal that financial listed firms disclosed more financial information that non-financial firms. The current study found that higher family ownership, managerial ownership, government ownership, and CEO duality are associated with decreased disclosure level. However, concentration ownership and assets in place are not related to disclosure. The interaction of independent board and the audit organization have positive effects on some independent variables that are a leading cause of increasing disclosure level. This study is important for investors, as well as provides useful insights into accounting reporting effectiveness for standard setters and other users. By providing the current status of disclosing mandatory and voluntary financial information, this study contributes to reduce the existing gap in the literature relating to emerging economies and helps to identify the need for international standards