Investigating the effect of information asymmetry on financial variables affecting the securities

Yaghoub Alavi Matin; HamidReza Akhbari

Yaghoub Alavi Matin Islamic Azad University،Tabriz, Iran.
HamidReza Akhbari Islamic Azad University, Tabriz, Iran

Keywords: Return on assets (ROA), Daily average of trading volume, Stock prices, Information asymmetry

Abstract

In this study, a comprehensive analysis was conducted to study the effect of information asymmetry on financial variables affecting the securities in companies operating in the Tehran Stock Exchange during 2013 to 2017. The main objective of this research is to identify the various aspects of information asymmetry on financial variables affecting the securities of companies listed on Tehran Stock Exchange and secondary objectives provide a new approach for the development of financial variables affecting the information asymmetry of companies, evaluate the effective financial variables and determine the most important information asymmetry indices among companies in the Stock Exchange. The present research is practical in terms of the purpose, and methodology of the research is descriptive and correlational type. This study is comprised of three hypotheses. To test the hypotheses, the econometric model using panel data has been used for model estimation and hypotheses testing. At first, the Chow test has been used to determine the type of model used in combined data. According to the results, the estimation method of fixed effects for the first and second models and estimation method of random effects for the third model were adopted. Then, the fixed effects in first model and random effects in second model were chosen by using the Hausman test between the fixed effects and random effects models in the first and second models, and the multiple linear regression test has been used in combination form (year- company). The results of this study showed that there is negative and significant relationship between information asymmetry and the rate of return on assets, the ratio of price to earnings per share, and stock price change. The obtained results still remain valid through controlling the variables of control. Ultimately, the results of research hypotheses led to the confirmation of first, second and third hypotheses.

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Author Biographies

Yaghoub Alavi Matin, Islamic Azad University،Tabriz, Iran.

Assistant Professor, Department of Management, Tabriz branch, Islamic Azad University،Tabriz, Iran.

HamidReza Akhbari, Islamic Azad University, Tabriz, Iran

PhD student of Financial Engineering, Department of Management ,Tabriz Branch, Islamic Azad University, Tabriz, Iran

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