Investigating the relationship between the disclosure of financial effects of Corona and the performance of companies listed on the Tehran Stock Exchange

Background & Aim: The corona virus epidemic has created significant economic effects on a global and national scale. Despite these effects, no evidence was found that could investigate the impact of this disease on business activities, especially from the accounting perspective. Therefore, this research was conducted with the aim of investigating the relationship between the disclosure of the financial effects of Corona and the future performance of companies admitted to the Tehran Stock Exchange. Methods: The present research is a descriptive study. To conduct the study, the information of 117 companies that disclosed the Corona issue in information conferences available on the Kodal website during the years 1398 to 1400 were used. Results: The findings of the research showed that the disclosure of Corona has a negative and significant relationship with future sales, operating profit and net profit, and a positive and significant relationship with future operating cash flow. In addition, the amount of corona disclosure has a positive and significant relationship with short-term abnormal stock returns. Conclusion: In general, the companies that have disclosed and provided more information about the financial effects of Corona, despite the weakening of the company's performance, their operating cash flow has increased, and investors have shown a positive reaction to the discussions related to Corona during the presentation of conferences.