Corporate governance and information asymmetry

The purpose of this study is to investigate the impact of some corporate governance mechanisms on information asymmetry. From among different mechanisms of corporate governance, the number of board members who were not responsible, ownership concentration and the percentage of institutional ownershi...

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Main Authors: Hamid Salehi, Hamideh Rezaie, Farideh Ansari
Format: Article
Language:English
Published: Growing Science 2014-08-01
Series:Management Science Letters
Subjects:
Online Access:http://www.growingscience.com/msl/Vol4/msl_2014_204.pdf
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author Hamid Salehi
Hamideh Rezaie
Farideh Ansari
author_facet Hamid Salehi
Hamideh Rezaie
Farideh Ansari
author_sort Hamid Salehi
collection DOAJ
description The purpose of this study is to investigate the impact of some corporate governance mechanisms on information asymmetry. From among different mechanisms of corporate governance, the number of board members who were not responsible, ownership concentration and the percentage of institutional ownership are considered. Time scale of the study includes the years from 2005 to 2011. Sampling was performed among all the companies accepted in Tehran Stock Exchange using systematic removal method. This sample includes 504 companies-years. This is a post-event study. Experimentally, this study lies in accounting proving research areas and it is based on financial statements of the firms, and regarding purpose is application. Descriptive method has been used in this study. The findings show that there was a positive and significant relationship between the number of board members who are not responsible and the percentage of institutional ownership from the one side, and information asymmetry from the other. In addition, the findings show a negative significant relationship between ownership concentration and information asymmetry.
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spelling doaj-art-d102ee8e37fd4eccb6774d933ba7d2dd2025-08-20T02:03:54ZengGrowing ScienceManagement Science Letters1923-29341923-93432014-08-01481829183610.5267/j.msl.2014.6.048Corporate governance and information asymmetryHamid SalehiHamideh RezaieFarideh AnsariThe purpose of this study is to investigate the impact of some corporate governance mechanisms on information asymmetry. From among different mechanisms of corporate governance, the number of board members who were not responsible, ownership concentration and the percentage of institutional ownership are considered. Time scale of the study includes the years from 2005 to 2011. Sampling was performed among all the companies accepted in Tehran Stock Exchange using systematic removal method. This sample includes 504 companies-years. This is a post-event study. Experimentally, this study lies in accounting proving research areas and it is based on financial statements of the firms, and regarding purpose is application. Descriptive method has been used in this study. The findings show that there was a positive and significant relationship between the number of board members who are not responsible and the percentage of institutional ownership from the one side, and information asymmetry from the other. In addition, the findings show a negative significant relationship between ownership concentration and information asymmetry.http://www.growingscience.com/msl/Vol4/msl_2014_204.pdfCorporate governanceInformation asymmetryInstitutional ownershipMajority ownershipBoard of directors
spellingShingle Hamid Salehi
Hamideh Rezaie
Farideh Ansari
Corporate governance and information asymmetry
Management Science Letters
Corporate governance
Information asymmetry
Institutional ownership
Majority ownership
Board of directors
title Corporate governance and information asymmetry
title_full Corporate governance and information asymmetry
title_fullStr Corporate governance and information asymmetry
title_full_unstemmed Corporate governance and information asymmetry
title_short Corporate governance and information asymmetry
title_sort corporate governance and information asymmetry
topic Corporate governance
Information asymmetry
Institutional ownership
Majority ownership
Board of directors
url http://www.growingscience.com/msl/Vol4/msl_2014_204.pdf
work_keys_str_mv AT hamidsalehi corporategovernanceandinformationasymmetry
AT hamidehrezaie corporategovernanceandinformationasymmetry
AT faridehansari corporategovernanceandinformationasymmetry