Investigating the Effect of the Quality of Business Nature Disclosure and Financial Performance on The judgment of investors companies A case study: )in Amirabad Port Special Economic Zone Investor(

Document Type : Original Article

Authors
Ferdos asl saeeidi pour 1
Parvaneh Zeraati foukolaei 2
1 Master's Degree, Department of Public Administration, Jouybar Branch, Islamic Azad University, Jouybar, Iran.
2 Assistant Professor, Department of Production Management, Jouybar Branch, Islamic Azad University, Jouybar, Iran.
10.22034/jmek.2023.397242.1090
Abstract
The ability to analyze and predict is crucial for investment decisions, depending on factors like future profits, stock prices, and risk. High-quality information disclosure, particularly through the Management Commentary, significantly enhances investors' decision-making in the capital market. This study aims to investigate the impact of the quality of business nature disclosure in the Management Commentary and the company's financial performance on professional investors' judgments regarding investment in the Amirabad Port Special Economic Zone. The research is applied in purpose and descriptive-correlational in nature. Data were collected using a scenario-based questionnaire from a sample of 70 professional investors active in the Amirabad Port Special Economic Zone in 2022. To test the hypotheses, structural equation modeling (PLS) and analysis of variance were utilized via SPSS and SmartPLS software. The findings reveal that both the quality of business nature disclosure and financial performance have a significant positive effect on investors' judgments concerning investment decisions and earnings sustainability predictions. Specifically, when companies exhibit high financial performance quality alongside transparent business nature disclosure, investors' willingness to invest in the Amirabad Port increases, and they assign greater weight to the company's earnings in their judgments. These results emphasize the critical role of information transparency and non-financial reporting in reducing information asymmetry and improving optimal resource allocation in emerging markets. Furthermore, this research highlights the necessity for standard-setters to develop comprehensive guidelines for non-financial disclosures.
Keywords
Information Disclosure
Business Nature
Financial Performance
Investors' Judgment
Amirabad Port
Subjects
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Management, Economics and Entrepreneurship Studies
Volume 6, Issue 1
Spring 2025
Pages 39-52

  • Receive Date 21 December 2024
  • Revise Date 30 January 2025
  • Accept Date 21 February 2025