The Relationship between the Frequency of News Release and the Information Asymmetry: The Role of Informed Trading and Uninformed Trading

2008 ◽  
Author(s):  
Srinivasan Sankaraguruswamy ◽  
Jianfeng Shen ◽  
Takeshi Yamada
Keyword(s):  
Information Asymmetry ◽  
Informed Trading ◽  
News Release ◽  
The Relationship

scholarly journals Leverage and firm investment: the role of information asymmetry and growth

2019 ◽  
Vol 27 (1) ◽  
pp. 56-73 ◽  
Author(s):  
Albert Danso ◽  
Theophilus Lartey ◽  
Samuel Fosu ◽  
Samuel Owusu-Agyei ◽  
Moshfique Uddin
Keyword(s):  
Information Asymmetry ◽  
High Growth ◽  
Firm Investment ◽  
Financial Leverage ◽  
Content Type ◽  
Growth Firms ◽  
The Impact ◽  
The Relationship ◽  
Role Of Information

PurposeThis paper aims to demonstrate how financial leverage impacts firm investment and the extent to which this relationship is conditional on the level of information asymmetry as well as growth.Design/methodology/approachThe paper relies on data from 2,403 Indian firms during the period 1995-2014, generating a total of 19,544 firm-year observations. Analysis is conducted by using various panel econometric techniques.FindingsDrawing insights from agency theories, the paper uncovers that financial leverage is negatively and significantly related to firm investment. It is also observed that the impact of financial leverage on firm investment is significant for high information asymmetric firms. Finally, the paper shows that the relationship between leverage and firm investment is significant for low-growth firms. However, no significant relationship is found between leverage and investment for high-growth firms.Originality/valueThis paper provides fresh evidence on the leverage–investment nexus and, to the authors’ knowledge, it the first paper to examine the extent to which this leverage–investment relationship is driven by the level of information asymmetry.

scholarly journals Enterprises’ R&D Investment, Venture Capital Syndication and IPO Underpricing

2021 ◽  
Vol 13 (13) ◽  
pp. 7290
Author(s):  
Xuemeng Guo ◽  
Kai Li ◽  
Siyi Yu ◽  
Bolu Wei
Keyword(s):  
Venture Capital ◽  
Information Asymmetry ◽  
Adverse Selection ◽  
Significant Positive Correlation ◽  
Ipo Underpricing ◽  
Positive Correlation ◽  
The Relationship ◽  
D Investment

Based on the data of companies that got ChiNext listed from 2009 to 2018, this paper empirically studies the relationship among R&D investment, venture capital (VC) syndication and IPO underpricing. It is found that there is a significant positive correlation between R&D investment and IPO underpricing, indicating that the higher the R&D investment is, the higher the IPO underpricing degree is; the intervention of VC syndication plays a role of “adverse selection” instead of giving play to its advantages of sharing information, which intensifies the positive correlation between R&D investment and IPO underpricing. Further analysis shows that the reputation of the leading VC in syndication can play a negative regulating role; the higher the reputation of the leading VC is, the more it can play the “certification effect”, reduce the information asymmetry caused by R&D investment, therefore alleviating the IPO underpricing caused by R&D investment.

scholarly journals DOES INTERNAL CONTROL WORK? FRAUD CASE IN GOVERNMENT SECTOR - INDONESIAN EVIDENCE

2020 ◽  
Vol 20 (2) ◽  
pp. 153
Author(s):  
Hasnawati Hasnawati ◽  
Muhammad Nuryatno Amin
Keyword(s):  
Organizational Culture ◽  
Law Enforcement ◽  
Information Asymmetry ◽  
Internal Control ◽  
Control Functions ◽  
Government Sector ◽  
Internal Control System ◽  
Control Work ◽  
The Relationship

<p>This research analyzed the role of internal control in reducing intention to do fraud. Internal control becomes a variable that moderates the relationship between organizational culture, information asymmetry and law enforcement with a person's intention to commit fraud. This research took place in Sorong West Papua, a province in Eastern Indonesia. Respondents from this research are government employees and taken with convenience sampling method.<br />The findings of this study are: This study proved that the greater the information asymmetry, the higher the intention to do fraud. In addition law enforcement and regulation could reduce fraud intention. However, this study had not proven the influence of organizational culture on fraud and this study also failed to prove the role of internal control to reduce fraud intention<br />This research had a practical contribution where in this case, law enforcement and regulation becomes the most important thing in reducing fraud intention. Besides it is necessary to improve the internal control system in order to function as expected. The originality of this study, there are still little empirical research that discusses the study of internal control functions associated with the reduction of fraud intention.</p>

scholarly journals A probabilidade de negociação com informação privilegiada no mercado acionário brasileiro

2013 ◽  
Vol 11 (2) ◽  
pp. 249
Author(s):  
Orleans Silva Martins ◽  
Edilson Paulo
Keyword(s):  
Corporate Governance ◽  
Information Asymmetry ◽  
Insider Trading ◽  
Voting Rights ◽  
Informed Trading ◽  
Common Stocks ◽  
Level 1 ◽  
Probability Of Informed Trading ◽  
The Relationship ◽  
Level 2

This paper aims to investigate the existence of insider trading in the Brazilian stock market. For this, we estimate the probability of informed trading (PIN) of 229 stocks during the years 2010 and 2011, using the model of Easley <i>et al.</i> (2002). In the results, it was found that the average PIN of these stocks was 24.9%, suggesting the existence of informed trading in that period. Considering the segment of corporate governance, the stocks listed on Level 2 had the lowest average PIN (24.4%), while stocks on Level 1 had the highest average (25.6%). Considering the classes of stock, the average PIN of common stocks was 24.2% and the average PIN of preferred stocks was 26.0%, indicating that the stocks with voting rights had lower information asymmetry. Still, it was found that the relationship between greater and lesser liquidity PIN was only confirmed for common stocks with high liquidity.

scholarly journals Accounting Conservatism, Information Asymmetry and Cash Holdings

2021 ◽  
Vol 28 (1) ◽  
pp. 63
Author(s):  
Walid Shehata ◽  
Ahmed Rashed
Keyword(s):  
Information Asymmetry ◽  
Cash Holdings ◽  
Accounting Conservatism ◽  
Mediating Effect ◽  
Cash Holding ◽  
The Relationship ◽  
Role Of Information

This paper focuses on explore the association between accounting conservatism and cash holding through a mediating effect of information asymmetry (IA) for Egyptian firms listed in EGX 100 within the period between 2013 -2018 through 124 firms with 703 firm-observations. The results indicates that (1) conservatism doesn’t have an enormous effect on information asymmetry, (2) information asymmetry doesn’t have a serious effect on cash holding, (3) there’s not any mediation role of information asymmetry within the relationship between conservatism and cash, (4) conservatism effect a negatively on cash holding

Corporate social responsibility performance and information asymmetry: the moderating role of ownership concentration

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ijaz Ur Rehman ◽  
Syeda Khiraza Naqvi ◽  
Faisal Shahzad ◽  
Ahmed Jamil
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Information Asymmetry ◽  
Ownership Concentration ◽  
Method Of Moment ◽  
Content Type ◽  
Corporate Social ◽  
The Relationship ◽  
Moderating Role

Purpose This paper aims to examine the moderating effect of ownership concentration on the relationship between corporate social responsibility performance (CSRP) and information asymmetry using a sample of Chinese firms. Design/methodology/approach The authors use a sample of 208 listed firms from nine different sectors in China over the period of 2008–2018. They use the generalized method of moment approach to examine the dynamic relationship between CSRP, information asymmetry and ownership concentration. CSRP index is constructed using environmental performance, social performance and corporate governance performance measures. Findings The results indicate that CSRP positively affects the information asymmetry. Moreover, by taking ownership concentration as a moderating variable, the results indicate that ownership concentration negatively moderates the association between CSRP and information asymmetry. Research limitations/implications The findings of the study advance the understanding of CSR practices in China. The findings have important implications for the regulators and managers in China for adopting socially responsible activities for the improvement of firm performance and protecting shareholder rights. Originality/value The study extends the existing research on the association between CSRP and information asymmetry by including the ownership concentration as a moderating variable. The research showed that CSR plays an important role in reducing the informational gap between managers and outside stakeholders. However, the relationship between CSR and information asymmetry is not studied yet with the moderating role of ownership concentration.

Choosing a Markov blanket

2020 ◽  
Vol 43 ◽  
Author(s):  
Thomas Parr
Keyword(s):  
Markov Blanket ◽  
Target Article ◽  
The Relationship

Abstract This commentary focuses upon the relationship between two themes in the target article: the ways in which a Markov blanket may be defined and the role of precision and salience in mediating the interactions between what is internal and external to a system. These each rest upon the different perspectives we might take while “choosing” a Markov blanket.

Staring Down Death

Crisis ◽  
2016 ◽  
Vol 37 (3) ◽  
pp. 212-217 ◽  
Author(s):  
Thomas E. Joiner ◽  
Melanie A. Hom ◽  
Megan L. Rogers ◽  
Carol Chu ◽  
Ian H. Stanley ◽  
...  
Keyword(s):  
Suicide Risk ◽  
Clinical Utility ◽  
Blink Rate ◽  
Specific Task ◽  
Careful Planning ◽  
Eye Blink ◽  
Eye Blinks ◽  
Potential Clinical Utility ◽  
The Relationship

Abstract. Background: Lowered eye blink rate may be a clinically useful indicator of acute, imminent, and severe suicide risk. Diminished eye blink rates are often seen among individuals engaged in heightened concentration on a specific task that requires careful planning and attention. Indeed, overcoming one’s biological instinct for survival through suicide necessitates premeditation and concentration; thus, a diminished eye blink rate may signal imminent suicidality. Aims: This article aims to spur research and clinical inquiry into the role of eye blinks as an indicator of acute suicide risk. Method: Literature relevant to the potential connection between eye blink rate and suicidality was reviewed and synthesized. Results: Anecdotal, cognitive, neurological, and conceptual support for the relationship between decreased blink rate and suicide risk is outlined. Conclusion: Given that eye blinks are a highly observable behavior, the potential clinical utility of using eye blink rate as a marker of suicide risk is immense. Research is warranted to explore the association between eye blink rate and acute suicide risk.

Parenting Behaviors and Anxiety in Young Adults

2015 ◽  
Vol 36 (3) ◽  
pp. 170-176 ◽  
Author(s):  
Erin N. Stevens ◽  
Joseph R. Bardeen ◽  
Kyle W. Murdock
Keyword(s):  
Effortful Control ◽  
Parenting Behaviors ◽  
Protective Role ◽  
Anxiety Symptoms ◽  
Interactive Effects ◽  
Parental Overprotection ◽  
High Control ◽  
Development Of Anxiety ◽  
The Relationship

Parenting behaviors – specifically behaviors characterized by high control, intrusiveness, rejection, and overprotection – and effortful control have each been implicated in the development of anxiety pathology. However, little research has examined the protective role of effortful control in the relation between parenting and anxiety symptoms, specifically among adults. Thus, we sought to explore the unique and interactive effects of parenting and effortful control on anxiety among adults (N = 162). Results suggest that effortful control uniquely contributes to anxiety symptoms above and beyond that of any parenting behavior. Furthermore, effortful control acted as a moderator of the relationship between parental overprotection and anxiety, such that overprotection is associated with anxiety only in individuals with lower levels of effortful control. Implications for potential prevention and intervention efforts which specifically target effortful control are discussed. These findings underscore the importance of considering individual differences in self-regulatory abilities when examining associations between putative early-life risk factors, such as parenting, and anxiety symptoms.

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