... is used to test information asymmetry and financial constraints as mediating channels, and additional cross-sectional tests examine the moderating roles of analyst coverage and audit quality. Findings We document that greater options trading is associated with lower levels of corporate tax avoidance...

... financing costs Information asymmetry Investment efficiency Overinvestment Underinvestment H2a. The association between lower costs of debt financing and investment efficiency by reducing overinvestment is stronger for firms with ESG reporting quality. This study draws...

... trading turnover, possibly due to heightened information asymmetry. Furthermore, we show that during periods of elevated market uncertainty, these cyber-risk effects may be “overlooked” as market participants may be preoccupied with greater concerns at the macroeconomic level. G12 G14 G32 G40...

... the abovementioned concerns, existing literature highlights competition as an external governance force that can counter agency problems and information asymmetry (Hart, 1983 ; Laksmana and Yang, 2015). In view of this, PMC is considered a powerful mechanism that ensures efficient resource utilization by the firm’s...

... present value projects and attract capital from them. These findings are consistent with the results of the previous section. Healy and Palepu (2001) find that better accounting information increases investment efficiency by curtailing information asymmetry between managers and capital providers...

...Swechha Chada; Gopal Varadharajan Purpose This paper aims to examine the relationship between earnings quality and corporate cash holdings in an emerging economy. Existing literature posits that earnings quality is a result of information asymmetry and firms with lower earnings quality increases...

...Omer Unsal Purpose In this paper, the author utilizes a unique hand-collected dataset of workplace lawsuits, violations and allegations to test the relation between employee mistreatment and information asymmetry. Design/methodology/approach The author tests the impact of employee treatment...

... Publishing Limited Licensed re-use rights only Agency costs Information asymmetry Voluntary adoption XBRL eXtensible Business Reporting Language (XBRL) is an information technology (IT) data standard that provides an identifying tag for financial facts, such as total revenue, to create...

... transparency pay more cash dividend. Their results do not support the signaling hypothesis about the dividend. However, these results provide explicit support to the theory that corporate dividend policy is an outcome of information asymmetry. Moreover, the path analysis reveals the effect of earnings...

...Abiot Tessema Purpose The purpose of this paper is to investigate the impact of audit quality on information asymmetry for a sample of leading listed local banks in the Gulf Cooperation Council (GCC). In addition, the paper examines whether a firm's political connections moderate the association...

... leveraged-buyout firm decreases by approximately 8 basis points. The relationship hypothesis (Bharath et al., 2011 ; Boot, 2000 ; Boot and Thakor, 1994 ; Petersen and Rajan, 1994) postulates that firm-bank relationships lower borrowing costs by reducing information asymmetries. Firm-bank...

... by reputable underwriters have lower OSR than those underwritten by non-reputable underwriters. While issuer engages reputable underwriter to certify firm quality to reduce information asymmetry, the action brings with it lower initial returns for its IPO. Investors interpret the signal conveyed by issuer’s...

... implications of these ICT thresholds for banks with low, intermediate and high levels of financial access. Originality/value This is one of the few studies to assess how the growing ICT can be leveraged in order to reduce information asymmetry in the banking industry with the ultimate aim of improving...

...Venessa S. Tchamyou; Simplice A. Asongu; Jacinta C. Nwachukwu Purpose The purpose of this paper is to investigate the effects of information asymmetry (between the realized return and the expected return) on market timing in the mutual fund industry. Design/methodology/approach For the purpose...

... with liquid stocks. This suggests that, as sentiment wanes, investors become even more concerned about illiquidity, leading to even greater required compensation for holding illiquid assets. The authors find that information asymmetry is positively related to SEO price discounts but this relation...

...Aymen Ajina; Faten Lakhal; Danielle Sougné Purpose – The purpose of this paper is to examine the effect of institutional investors’ ownership and type on information asymmetry and stock market liquidity in France. Design/methodology/approach – The sample includes 162 French-listed firms...

... Limited 2014 China Short selling Information asymmetry Volume Margin trading Overvaluation Our paper makes several contributions to the literature. A number of studies have examined the impact of short selling on stock prices using emerging markets data (e.g. Bris et al., 2007...

... whether the existing theories of choice of equity selling mechanism is able to explain the phenomena. We argue that both monitoring hypothesis and information asymmetry hypothesis is relevant in the Chinese context. Therefore, we address three important questions in this paper. First, do firms...