Fatemeh Dehghani Poodeh

[ 1 ] - Investigating Bhattacharya Hypothesis about the Effect of Dividend Signal on Information Asymmetry Risk: An Earnings Transparency Approach

Information asymmetry in stock market can increase the risk of investment which in turn increases the capital cost of firms. Bhattacharya (1979) proposed a hypothesis that states dividend can act as a powerful signal in order to solve information asymmetry problem. We measured information asymmetry by lack of earnings transparency. Therefore we examine the effect of earnings transparency on cap...