SUMMARY
The main aim of the present study is to examine the relationship between restatement of financial statements and information asymmetry in companies listed on Tehran Stock Exchange. Statistical population of the present study is consisted of companies listed on Tehran Stock Exchange during the time frame of 2004 to 2014 and sample volume was taken equal to 113 companies by using screening method. In this study, restatement of financial statements, restatement of financial statements resulting from operating items and restatement of financial statements which lowers profit were taken as independent variables in order to study their effect on information asymmetry of companies. In this study in which panel data with fixed and random effects were used, results obtained from firm data analysis by using multi-variable regression at 95% confidence indicated that restatement of financial statements has a direct effect on information asymmetry in companies, in a way that restatement of financial statements resulting from operating items has a larger direct effect on information asymmetry in companies comparing to restatement of financial statements resulting from non-operating items. Also, it was indicated that decreasing income restatement of financial statements has a larger direct effect on information asymmetry in companies’ comparing to increasing profit restatement of financial statements.