Relationship between Timing of Financial Reporting and Firms Performance at Tehran Stock Exchange

Abstract

Financial Statements to be useful for Decision, should be relevant, reliable and comparable. Timeliness is the key determinant of relevant. Three criteria of performance evaluation including return on assets (ROA), return on equity (ROE) and change in net return (CNR) were considered as independent variables. Also, the early disclosing time, was considered as the dependent variable. Statistical data were sampled among 168 companies that is based on observations made annually since 1385 till 1389H.S. The results of regression analysis showed that when the ROA and ROE have been used as performance criteria, there is a significant dependency between timeliness of financial reporting and the performance of companies. As a result companies are able to obtain of used Assets, more profit and are able to increase their shareholders' profits, provide their reports more quickly. Also, after controlling for the impact of financial risk, change in financial risk, early disclosure time of previous period, size, transaction ratio and free float rate variables on the timeliness of financial reporting, changes were made in the results.

Keywords

• Timeliness of Financial Reporting
• Firms performance