Document Type : Original Article

Authors

• mohamadreza asiaie ¹
• mohsen khodabakhsh ²
• mahdi mahmoudi ³

¹ audit management

² The Board of Directors of the Stock Exchange and Securities Organization

³ financial manager

Abstract

A topic of recent monetary and financial research is how the capital market reacts to the central bank''s monetary policies. In particular, the question is how the response of the companies active in the economy to the change in access to external financial resources (for example, financing from the debt market) will be as a result of the change in monetary policies, And how does the quality of financial reporting play a role in this? thus, we investigated, the impact of monetary policies on information asymmetry, emphasizing the role of financial reporting quality. To measure monetary policies, information asymmetry and quality of financial reporting, indicators of liquidity volume, a price difference of stock buy and sale, and optional accrual items used respectively. Using a sample of 119 companies admitted to the Tehran Stock Exchange during the period between 2013 to 2022 shows that contractionary monetary policies lead to an increase in information asymmetry and the quality of financial reporting intensifies this relationship.

Keywords

• Monetary policies
• information asymmetry
• quality of financial reporting
• volume of liquidity