Research@Lincoln
    • Login
     
    View Item 
    •   Research@Lincoln Home
    • Faculty of Agribusiness and Commerce
    • Department of Financial and Business Systems
    • View Item
    •   Research@Lincoln Home
    • Faculty of Agribusiness and Commerce
    • Department of Financial and Business Systems
    • View Item
    JavaScript is disabled for your browser. Some features of this site may not work without it.

    Information asymmetry: Evidence from Iran listed companies

    Roudaki, Jamal; Babajani, F.; Tahriri, A.
    Abstract
    Inherent in the International and indigenous accounting standards is managerial discretion in the application of accounting methods, preparation of financial reports and disclosures. Extent literature indicates that almost all companies are engaged in some type of earnings management (Healy, 1985; Perry & Williams, 1994; Defond & Jiambalvo, 1994; Jordon, Clark, & Pate, 2008). A crucial question posed for accounting research is to identify the environmental conditions under which managerial discretion (i.e. accounting choices) are exercised. Using empirical analysis this paper investigates one of the fundamental conditions of earnings management, information asymmetry between managers and investors. When information asymmetry is high, stakeholders including investors do not have sufficient resources, incentives, or access to relevant information to monitor managers’ actions, which gives rise to earnings management. Empirical results show that the level of information asymmetry index which is the combination of five important Tehran Stock Exchange (TSE) relevant proxies (volume of trade, stock price variation, P/E ratio, number of trading days and firm age) has a positive statistically significant effect on the extent of earnings management practiced by companies listed on the TSE.... [Show full abstract]
    Keywords
    information asymmetry; volume of trade; stock price variation; price to earnings ratio; number of trading days; firm age; earnings management; Infomation asymmetry
    Fields of Research
    1402 Applied Economics; 1502 Banking, Finance and Investment; 1503 Business and Management
    Date
    2016-08
    Type
    Journal Article
    Collections
    • Department of Financial and Business Systems [451]
    Thumbnail
    View/Open
    roudaki-babajani-tahriri-2016-information-asymmetry-evidence-from-iran-listed-companies.pdf (250.8Kb)
    Permalink
    https://hdl.handle.net/10182/9480
    Metadata
     Expand record
    This service is managed by Library, Teaching and Learning
    • Archive Policy
    • Copyright and Reuse
    • Deposit Guidelines and FAQ
    • Contact Us
     

     

    Browse

    All of Research@LincolnCommunities & CollectionsTitlesAuthorsKeywordsBy Issue DateThis CollectionTitlesAuthorsKeywordsBy Issue Date

    My Account

    LoginRegister

    Statistics

    View Usage Statistics
    This service is managed by Library, Teaching and Learning
    • Archive Policy
    • Copyright and Reuse
    • Deposit Guidelines and FAQ
    • Contact Us