Explaining the Information Sticky Expectations Based on Disclosure Quality

Document Type : Original Article

Authors

1 PhD student, accounting, faculty of economic, Islamic Azad University Khomein Branch. Iran

2 3. Assistant Prof. in accounting, Faculty of Economics, Islamic Azad University, Khomein Branch, Khomein, Iran

3 2. Associate Prof. in accounting, Faculty of Management and Economic, Lorestan University, Iran

Abstract

Objective: Sticky expectations remain stable despite receiving new information relevant to the organization's situation. This effect seems to exist only in situations that benefit the manager. In other words, the manager is slow to adjust his decisions as new information is received. The purpose of this study is to examine the sticky expectations based on disclosure quality.
Research Method: In order to study the subject based on the panel regression model, in the period 2016 to 2023, data of 120 companies listed on the Tehran Stock Exchange were collected and used to test research hypotheses.
Results: The results of the research indicate that in the studied companies, we could see the managers' expectations stickiness. Also, the results of the second hypothesis of the study indicate that disclosure quality has a significant effect on the stickiness of managers’ information expectations. Finally, the sensitivity analysis conducted indicates that there is a significant difference between the high and low classes of information environment quality in terms of the sticky expectations, and it can be stated that changes in the information environment quality lead to changes in the sticky expectations.
Conclusion: The findings of this study indicate the presence of managerial expectation stickiness in the examined publicly listed companies, with disclosure quality exerting a significant impact on this stickiness. Moreover, sensitivity analysis reveals a significant difference in expectation stickiness across varying levels of information environment quality, underscoring the pivotal role of the information environment quality in influencing and moderating managerial expectation stickiness. These results highlight the necessity of enhancing disclosure quality and improving the information environment to reduce expectation stickiness and to increase transparency and informational efficiency in publicly traded firms.

Keywords

Main Subjects

References

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Sciences and Techniques of Information Management
Volume 12, Issue 3
March 2026
Pages 94-110

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