The purpose of this paper is to examine empiricaly the impact of aggressive reporting on the stock price informativeness of firms listed in Tehran Stock Exchange. To do this, information about 87 firms during the years 1384 to 1392 have been collected and analyzed. Using stock price synchronicity as proxy for stock price informativeness, results reveals that aggressive reporting damages the ability of stock prices to inform in Iranian firms. Also, results revealed that capital market development (depth and breadth) intensifies the impact of aggressive reporting in reducing stock price informativeness
