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Elbadry_et_al-2015-Financial_Markets,_Institutions_&_Instruments.pdf (248.97 kB)

Governance quality and information asymmetry

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journal contribution
posted on 2023-06-08, 18:17 authored by Ahmed Elbadry, Dimitrios Gounopoulos, Frank Skinner
This 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.

History

Publication status

  • Published

File Version

  • Published version

Journal

Financial Markets, Institutions and Instruments

ISSN

0963-8008

Publisher

Wiley

Issue

2-3

Volume

24

Page range

127-157

Department affiliated with

  • Business and Management Publications

Full text available

  • Yes

Peer reviewed?

  • Yes

Legacy Posted Date

2014-09-12

First Open Access (FOA) Date

2019-03-22

First Compliant Deposit (FCD) Date

2014-09-12

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