Investigating the effect of economic value added on reporting of financial information

Abstract

In recent decades, success and life of firm considerably depend on the level of the promotion of the values of these firms. Now, companies should be involved in a period in which a new economic framework should be established and be able to reflect value and enhance the profit. The purpose of this study is to investigate the effect of economic value added on reporting of financial information. Selected instance is composed of 71 companies between the years 2008-2011 among accepted companies on the Tehran Stock Exchange. In this study, the audited semiannual financial statements, quarterly financial performance and the formation of annual general meeting were regarded as dependent variables, economic value added as independent and firm size and debt ratio as control variable. Results of the present research indicated the effect of economic value added on the formation of annual general meeting while there was no effect of economic value added on semiannual financial statements audited and quarterly performance.