Nonlinear Relationship between Ownership Structure and Timely Release of Earnings Information: Evidence from Companies Listed in Tehran Stock Exchange

Abstract

This study aims at examining the relationship between characteristics of ownership structure curve, i.e. concentration of ownership, institutional ownership, and state ownership, and dissemination of timely information of profits in companies listed in the Tehran Stock Exchange in the five year period of 2008 to.2012. To determine timely release of information of profit, the variable of delay in reporting earnings have been used. A total number of 155 companies were selected in the sample, and tests of hypotheses were done by implementing multivariate regression analysis. The results showed that by increasing the proportional value of state ownership, the dissemination of timely information of profit rises. In other words, the existence of state ownership in the ownership structure would provide more updated timely information of profit. Also, the results indicated that firms’ interests in concentration of ownership and institutional ownership have no significant relationship with dissemination of timely information of profits.

Keywords

• corporate governance
• ownership structure
• concentration of ownership