International E-publication: Publish Projects, Dissertation, Theses, Books, Souvenir, Conference Proceeding with ISBN.  International E-Bulletin: Information/News regarding: Academics and Research

The Relationship between Ownership Concentration and Information Asymmetry Considering level of Voluntary Disclosure of Firms Listed in Tehran Stock Exchange

    , ,

Author Affiliations

  • 1Department of Accounting, Tabriz Branch, Islamic Azad University, Tabriz, IRAN
  • 2Economics and Management Faculty, Tabriz University, Tabriz, IRAN
  • 3Department of Economics, Tabriz Branch, Islamic Azad University, Tabriz, IRAN

Res. J. Recent Sci., Volume 3, Issue (4), Pages 40-46, April,2 (2014)

Abstract

The present study determined a measure to explain influence of ownership structure on information asymmetry considering voluntary disclosure. Samples included 104 firms listed in Tehran Stock Exchange. Results showed that ownership concentration positively and significantly influenced on information asymmetry of all firms; moreover, firm size negatively and significantly influenced on information asymmetry. For all the firms, managerial ownership and institutional ownership had negatively and positively significant influence on information asymmetry, respectively. In firms with low voluntary disclosure, ownership concentration positively but insignificantly influenced on information asymmetry; in firms with high voluntary disclosure, while, ownership concentration positively and significantly influenced on information asymmetry. In firms with low voluntary disclosure, managerial ownership negatively but insignificantly influenced on information asymmetry; in firms with high voluntary disclosure, while, managerial ownership positively but insignificantly influenced on information asymmetry. Results also showed that institutional ownership positively but insignificantly influenced on institutional ownership in firms with both low and high voluntary disclosure.

References

  1. Noravesh I. and Ebrahimi Kordlar A., The Relationship between Investor Combination and Information Symmetry and Performance Accounting Measures, Accounting and Auditing Investigations, 42(6), 97-124 (2005)
  2. Chung H., Sheu H. and Wang J., Do Firms' Earnings Management Practices Affect Their Equity Liquidity?, Finance Research Letters, , 152-158 (2009)
  3. Ghaemi M.H. and Vatan Parast M.R., The Information Role of Accounting in Decreasing Information Asymmetry of Tehran Stock Exchange, Accounting and Auditing Investigations, 41(2), 85-103 (2005)
  4. Kashanipoor M., Rasekhi S., Taghinejad B. and Rasaeian A., Financing Limitations and Sensitivity of Investment to Cash Flows of Tehran Stock Exchange, Accounting Advancements, 2(5), 51-74 (2010)
  5. Thomas W.B., A test of the market's mispricing of domestic and foreign earnings, Journal of Accounting and Economics, 28(3), 243-267 (1999)
  6. Jiang H., Habib A. and Hu B., Ownership Concentration, Voluntary disclosures and information Asymmetry in New Zealand, The British Accounting Review, 43, 39-53 (2011)
  7. Fama Eugene F. and Michael C. Jensen Agency Problems and Residual Claims, Journal of Law and Economics, 26(2), 327-349 (1983)
  8. Kazemi, H. and Mohamadnejad A., the Relationship between Institutional Ownership and Information Asymmetry and Financial Performance of Firms, Emprical Studies on Financial Accounting, 1(2), 110-128 (2011)
  9. Kanagaretnam K., Lobo G.J. and Whalen D.J., Does good corporate governance reduce information asymmetry around quarterly earnings announcements? Journal of Accounting and Public Policy, 26(4), 497–522 (2007)
  10. Korbacheh S., Asgari M.R., Khalili M., Abbasi R., Esgandari K. and Torabynia S., Offering a Model to describe the Relationship between Corporate Governance Factors and Return on Net margin of those Companies accepted at Stock Exchange, Research Journal of Recent Sciences, 2(3), 22-30 (2013)