... financing costs by signalling transparency and mitigating information asymmetry. According to signalling theory, firms communicate credible information to reduce such asymmetries (Spence, 1973), which otherwise hinder investors and lenders from accurately assessing firm risk (La Rosa et al., 2018...

... 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. Jin Boon Wong can...

... and provides policy implications. Empirical work on PMC presents conflicting findings regarding its impact on agency problems and information asymmetry. On one hand, empirical studies suggest that intense competition exacerbates agency issues and managerial slack (Ghosal, 2002). Particularly, from...

... of corporate crisis management practices following adverse events. Crisis management Information asymmetry Crash risk Investor trust Agency conflict To make amends for the loss of shareholders' trust due to the stock price crash, managers are motivated to focus on environmental, social...

...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...