Information Asymmetry in Financial Markets: Challenges and Threats

Information Asymmetry within Financial Markets and Corporate Financing Decisions

It is worth noticing that a great deal of interest has recently been paid by the financial literature with respect to the relationship prevailing between the information asymmetry and the financing decisions regarding 150 firms listed on the SBF 250 index over the period ranging from 2005 to 2012. The achieved estimation results have revealed that most variables turn out to be significantly cor...

Competitive Threats, Information Asymmetry, and Insider Trading

This paper provides evidence that intensified product market competition increases information asymmetry between corporate insiders and investors. I use volume and gains from insider trading as proxies for information asymmetry. I show that when a firm faces competitive threats insiders purchase and sell more stocks and their trading better predicts future stock returns and long-term profitabil...

the link between information asymmetry and conservatism in financial reporting

the main goal of this paper is determining the link between information asymmetry among equity investors and conservatism in financial reporting. becouse we argu that information asymmetry between equeity investors generates accounting conservatism in financial statements. conservatism reduces the manager's incentives and ability to manipulate accounting numbers and so reduces agency costs...

Markets for Financial Information

Information Dispersion in Financial Markets

Public disclosures can level information asymmetry in financial markets by removing informed traders’ advantage, or can exacerbate asymmetry by further increasing these traders’ knowledge of the firm. This study finds evidence of the latter phenomenon in earnings conference calls, where management releases new information, and financial analysts on the call immediately respond and question mana...