Elbadry_et_al-2015-Financial_Markets,_Institutions_&_Instruments.pdf (248.97 kB)
Governance quality and information asymmetry
journal contribution
posted on 2023-06-08, 18:17 authored by Ahmed Elbadry, Dimitrios Gounopoulos, Frank SkinnerThis paper explores the relation between corporate governance and asymmetric information. We find that proxies for governance mechanisms that encourage the monitoring of managers are inversely related to proxies for asymmetric information. Specifically, greater board independence, board activeness and debt financing is significantly and inversely related to the degree of asymmetric information as reflected in bid-ask spreads, volatility of share returns, normalised share trade volumes and market value of shares traded. This implies that corporate governance mechanisms that enhance managerial monitoring lead to improvements in the informational environment of the firm.
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Publication status
- Published
File Version
- Published version
Journal
Financial Markets, Institutions and InstrumentsISSN
0963-8008Publisher
WileyExternal DOI
Issue
2-3Volume
24Page range
127-157Department affiliated with
- Business and Management Publications
Full text available
- Yes
Peer reviewed?
- Yes
Legacy Posted Date
2014-09-12First Open Access (FOA) Date
2019-03-22First Compliant Deposit (FCD) Date
2014-09-12Usage metrics
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