EFFECTS OF FINANCIAL INFORMATION TRANSPARENCY ON INVESTOE BEHAVIOR IN TEHRAN STOCK MARKET

For almost a decade the transparency of financial information has been an important influence on investors, investment strategies. An increasing amount of research shows that the availability and quality of companies, financial information are tow major factors influencing investor investment decisions (Young, 2003). Young has found that after financial scandals of Enron Oil Company in U.S.A poor corporate governance resulting in a lack of financial information transparency has shakenpublic confidence in stock market (Young, 2003). This study analyzed the effects of financial information transparency, which is the fifth principle of the six principle of corporate governance, on investor behavior and it present a framework for evaluating of investor behavior by concepts of ownership structure, financial transparency and board structure. In this study, the researcher tried to present an appropriate literature in the field of corporate governance and to determine the effects of conducting of the fifth principle (principle of disclosure and transparency) on investor's behavior in Tehran Stock Market by carrying out researches such as those which were conducted in developed countries.Data of this study was collected by a survey instrument containing 19 closed-ended questions which answered by investors who have experience buying corporation share from the Tehran Stock Exchange, and by statistical analyzing of these answer the researcher inspects the effects of Financial Information Transparency on investor behavior.The different statistical models which used for examining of hypothesis are descriptive statistics, correlation analysis and conducting statistical examinations showed that Financial Information Transparency has a positive correlation with investor behavior and improving Financial Information Transparency lead to increasing of shareholders, confidence in Tehran stock market and increasing of their investment in stock market.