Publication Type

Journal Article

Publication Date

1-2013

Abstract

This study investigates the relation among information disclosure, firm characteristics and information asymmetry. The authors find evidence consistent with the notion that increasing corporate disclosure and transparency reduces the asymmetric information between informed and uninformed investors. The findings indicate a strong relation between firm characteristics and level of information disclosure. Larger firms, firms with high growth opportunity and superior performance are associated with higher level of information disclosure. With respect to type of information, large firms, firms with superior operating performance, high growth opportunity are likely to disclose the investment and structural change as well as legal and miscellaneous information. Furthermore, the empirical findings indicate that listed companies with high corporate transparency and disclosure have low relative bid-ask spreads and high share turnover. Conclusively, the evidence supports the notion that increasing corporate disclosure and transparency reduce the asymmetric information between informed and uninformed traders.

Keywords

information disclosure, firm characteristics, disclosure policy

Discipline

Finance and Financial Management | Portfolio and Security Analysis

Research Areas

Finance

Publication

Investment Management and Financial Innovations

Volume

2013

Issue

1

First Page

225

Last Page

234

ISSN

1810-4967

Publisher

Business Perspectives

Additional URL

http://businessperspectives.org/journals_free/imfi/2013/imfi_en_2013_01cont_Chiyachantana.pdf

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