Ownership Type (Institutional and Single) with Information Asymmetry: Emphasizing on Financial Information Reliability as Moderator Variable

Document Type : Research Paper

Authors

1 Assistant Professor of Accounting in Urmia University

2 Msc Accounting in Urmia University

Abstract

 
Information asymmetry is formed as a result of the relationship between the representation and separation of ownership and management and among different factors that can modify this relationship, is the structure or type of ownership. The aim of this paper was to investigation of   relationship between type of ownership (institutional and Single) with information asymmetry with an emphasis on reliability of financial information as a moderator variable. The percentage of institutional ownership and bid-ask spread were used to measuring to type of ownership and information asymmetry respectively. In order to calculate the reliability of financial reporting, was used the report of Stock Exchange Organization named “Ranking of companies listed on Tehran Stock Exchange in terms of disclosure and quality of information appropriate”. Statistical population of study is all companies listed on Tehran Stock Exchange in the period 2008-2016. The results show that the institutional ownership in companies more, reliability of financial information, affect the information asymmetry as moderating variable, but there is not this relationship in companies with individual ownership.

Keywords

Main Subjects

References

Accounting Standards Committee, 1388, "Accounting Standards of Iran, Audit Organization", Sixth Edition, Audit Organization Publications.
Akerlof, G. (1970) , " The Market for Lemons: Quality Uncertainty and Market Mechanism ", Quarterly Journal of Economics, Vol. 90,629-650.
Brown, S. & Hillegiest, S. A. (2007). "How Disclosure Quality Affects the Level of Information Asymmetry". Review of Accounting Studies. 12: 443–477.
Bushee, B. J. ,1998, The Influence of Institutional Investors on Myopic R&D Investment Behavior, Accounting Review,73,. pp. 305-334.
Chen, S. Chen, X. & Cheng, Q. (2008). Do Family Firms Provide More or Less Voluntary Disclosure? Journal of Accounting Research, 64 (3): 499-536
Chi, J. , M. Gupta (2009) , "Overvaluation and Earning Management", Journal of Banking and Finance. Vol. 33 (9) , PP. 1652-1663.
Chong-En Bai, Qiao Liu, Jo Lu, Frank M, song and Junxi Zhag, en. (2006). Empirical study on corporate Governanse and Market valuation in China. Economic Research Journal, Vol 2, pp 83-111.
Chung,R. ,Firth,M. ,and Kim,J. (2005). ''Earnings manangment, surplus free cash flew,and external monitoring''Journal of Business Research,Vol. 58,pp. 766-776
Clarkson,G. ,Jacobsen,T. E. ,Batcheller,A. L (2007). ’’Information asymmetry and information sharing’’. Government Information Quarterly. Vol. 24,Issue 4,pp827-839.
Cornett, M. M. , A. J. Marcus, A. Saunders, & H. Tehranian, (2007) , "The impact of institutional ownership on corporate operating performance", Journal of Bankingand Finance, Vol. 31, PP. 1771–1794.
Diamond, D. W. and R. E. Verrecchia, (1991). “Disclosure, liquidity and the cost of capital. ” Journal of Finance Vol. 46, pp. 1325-1359.
Ebrahimi Kordlar. Ali. (1386). " Corporate governance system and the role of institutional stakeholders in it". Journal of Accounting Knowledge and Research, Third Year, Vol. 8, pp. 4-25.
Fadaeinejad, Mohammad Esmaeil: Khoramnia, Navid. (1391). "Investigation of Information Content of Disclosure of Corporate Profit Information and Its Effect on liquidity and Information Asymmetry in Tehran Stock Exchange", Quarterly of the Stock Exchange. No. 18 pp. 61-82.
Fama, E. , and Jensen, M. (1983). " Separation of Ownership and Control". Journal of Law and Economics, Vol. 26, PP. 325-301.
Ghaemi, Mohammad Hosein: Vatanparast, Mohammad Reza. (1384). "The role of accounting information in reducing information asymmetry in Tehran Stock Exchange". Accounting and Auditing Reviews, Volume 12, Issue 3.
Gillan, S. , and Straks, L. (2003). "Institutional investors,Corporate governance: Global perspective,ownership and governance of enterprises: Recent innovative developments,Laixiang Sun ,Macmillan.
Haji ghadirzade Mehdi , Mansour Garkaz , Alireza mehrazin, (2012) ," Ownership structure and Information asymmetry" Economics and Finance Review Vol. 2 (5) pp. 62 – 70.
Hassas Yeganeh, Yahya: Hamidi, Elham. (1393). "The relationship between the quality of accounting information, the delay of the price response and the future return on equity", Quarterly Journal of Empirical Financial Accounting, No. 42, pp. 31-58.
Jean-François Gajewski (2015) Can Internet-based disclosure reduce information asymmetry? Advances in Accounting, incorporating Advances in International Accounting. Pp;269-279.
Khani, Abdollah: Ghajavand, Ziba. (1391). "The Effect of the Market Competitive Sphere on the Relationship Between Information Asymmetry and Cost of Equity Capital", Journal of Financial Accounting Research, Year 4, No. 4, pp. 67-88.
Liao, S. H. & Wu, C. c. (2010) , System perspective of knowledge management, organizational learning, and organizational innovation, Expert Systems with Applications, Vol. 37, pp: 1096–1103.
Makyan, Seyed Nezamaldin: Raeisi, Bahman. (1393). "The Effect of Corporate Governance on Information Asymmetry (Case Study: Tehran Stock Exchange). " Quarterly Journal of Economic Research (Sustainable Growth and Development) , No. 4, Winter 1393, Pages 1-22.
Penman, S. , and X. Zhang (2002). Accounting conservatism, the quality of earnings, and stock returns. The Accounting Review,77, 23..
Petersen, C. , and T. Plenborg (2006). “Voluntary disclosure and information asymmetry in Denmark. " Journal of International Accounting, Auditing and Taxation, Vol. 15, pp. 127-149.
Rezazadeh, Javad: Azad, Abdollah. (1387). "The relationship between information asymmetry and conservatism in financial reporting. " Accounting and Auditing Reviews, Vol. 54, pp. 63-80.
Singhavi, S. S. , & Desai, H. B. (1971). An empirical analysis of the quality of corporate financial disclosure. The Accounting Review, 46 (1) , 129-138.
Journal of Accounting and Social Interests
Volume 8, Issue 3 - Serial Number 30
December 2018
Pages 49-69

Files

History

  • Receive Date: 15 July 2017
  • Revise Date: 16 July 2018
  • Accept Date: 31 December 2017

Share

How to cite

Statistics