The effect of information competition on the pricing of the probability of using confidential information with an emphasis on the dimensions of information disclosure

Articles in Press

Document Type : Research Paper

Authors

1 Department of Financial Engineering, Maragheh Branch, Islamic Azad University, Maragheh, Iran.

2 Department of Accounting, Maragheh Branch, Islamic Azad University, Maragheh, Iran.

3 Department of Accounting, Marand Branch, Islamic Azad University, Marand, Iran.

10.22103/jak.2025.24042.4095

Abstract

Abstract

Objective: The aim of this research is to determine the impact of information competition on the pricing of the probability of using confidential information with an emphasis on the dimensions of information disclosure.

Methods: Based on this, the current research, in terms of methodology, is quasi-experimental and post-event, as well as practical in terms of its nature and goal. The statistical population of the research includes all the listed companies in the Tehran Stock Exchange for the period of 2011 to 2021 (11 consecutive years) that 146 companies were selected by systematic elimination sampling method and studied.

Results: The results of the hypotheses test with Eviews 13 and PLS software indicate the existence of a negative and significant relationship between information competition and the pricing of the probability of using confidential information, and the dimensions of information disclosure, including the disclosure of financial information; disclosure of non-financial information; disclosure of strategic information and disclosure of risk information amplify this relationship. This result indicates that the disclosure of companies' information encourages the market to reduce the pricing of the probability of using confidential information.

Conclusion: Information competition as a mechanism of extra-organizational monitoring and disclosure of information as an internal information signaling factor prevent arbitrage profits by using of the information advantage. This subject requires the development of information disclosure dimensions in the form of the professional requirements, and increase of monitoring and information competition in the markets.

Keywords

Main Subjects

Journal of Accounting Knowledge

Articles in Press, Accepted Manuscript
Available Online from 17 March 2025

Files

History

  • Receive Date: 14 September 2024
  • Revise Date: 13 March 2025
  • Accept Date: 17 March 2025

Share

How to cite

Statistics