The aim of this study is to investigate the effects of outside board on firm value in Tehran Stock Exchange (TSE) from the perspective of information transaction costs. To do so, a sample of 96 firms listed in TSE is selected to be studied during the period of 2003-2012. Tobin q ratio is used to measure firm's value and bid-ask spread for information transaction costs. In addition to these variables, four control variables are adapted namely firm's characteristic, age, size and duality. The results of the study show that there is not a significant relationship between outside board and firm's value. Investigating the relationship between outside board and firm's value, the results indicate that only in food and non-metal industries, there is a negative relationship between outside board and firm's performance. Therefore, it can be concluded that not in all of industries outside board affects firm's value. Further, results do not prove the effects of outside board on information transaction cost. In addition, the results do not support that information transaction cost affect firm's value. Finally, the results also suggest that independence and presence of outside board of director member does not affect firm's value in firms with lower information transaction cost.