Document Type : Research Paper
Authors
1 Department of Economics , Faculty of Economics , Allameh Tabatabai University
2 Department of Economics,Faculty of Economics , Allameh Tabatabai University
3 PhD Candidate of Financial Economics, University of Allamah Tabatabaei, Tehran, Iran
Abstract
Corporates adjust their information voluntary disclosure according to the volatilities they experience in their cash flows. The purpose of this study is to investigate the effects of news concerning risk, ambiguity level, and investors' ambiguity aversion on the policy adopted by firms as to the voluntary disclosure (conservative or non-conservative) of soft and hard information in the digital industry subset of Tehran Stock Exchange within the period of 2012-2022. Further, we have used the corporate voluntary disclosure lag to capture the disclosure dynamics along with the control variables including the cost of capital, financial leverage and stock liquidity by dynamic panel models to explain the voluntary disclosure behavior of soft and hard information of the corporates. The results indicate that managers of companies active in the digital industry, depending on the type of information available to them for voluntary disclosure conservatively or non-conservatively, respond differently to the news related to risk, ambiguity and ambiguity aversion of investors. That could be due to the nature of the disclosed information (credibility of information for investors). Likewise, the findings confirm the increasing effects of voluntary disclosure of previous periods on the disclosure of subsequent periods, which somehow confirms the existence of inertia in voluntary disclosure policies in the studied industry.
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