Are Corporate Governance Mechanisms Associated with Information Asymmetry Level among UAE Listed Companies?
Asymmetry of information involves the possession of information in different ways between the most informed stakeholders and the uninformed stakeholders which may affect the performance of companies. Using agency theory, this study investigates the relationship between corporate governance mechanis...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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UUM PRESS
2018-01-01
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| Series: | Journal of Business Management and Accounting |
| Subjects: | |
| Online Access: | https://e-journal.uum.edu.my/index.php/jbma/article/view/8801 |
| _version_ | 1827761966180990976 |
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| author | Nor Asma Lode Saleh Salem Saeed Bajrei |
| author_facet | Nor Asma Lode Saleh Salem Saeed Bajrei |
| author_sort | Nor Asma Lode |
| collection | DOAJ |
| description |
Asymmetry of information involves the possession of information in different ways between the most informed stakeholders and the uninformed stakeholders which may affect the performance of companies. Using agency theory, this study investigates the relationship between corporate governance mechanisms and level of information asymmetry in UAE based on 64 annual reports for the year ended 2010. The findings indicate that board size and information asymmetry are positively related among UAE listed companies, while board ownership and company size are negatively related with information asymmetry. These results suggest that large size of the board of directors may lead to information asymmetry because they seem to be unable to monitor the management and protect the interest of shareholders. In addition, evidence of high information asymmetry among UAE companies imply that the implementation of the Code of Corporate Governance seems to be less likely to resolve agency problems due to asymmetric information.
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| first_indexed | 2024-03-11T10:23:17Z |
| format | Article |
| id | doaj.art-06995d519fe140239e54ea8fdfb117f8 |
| institution | Directory Open Access Journal |
| issn | 2231-9298 2636-9249 |
| language | English |
| last_indexed | 2024-03-11T10:23:17Z |
| publishDate | 2018-01-01 |
| publisher | UUM PRESS |
| record_format | Article |
| series | Journal of Business Management and Accounting |
| spelling | doaj.art-06995d519fe140239e54ea8fdfb117f82023-11-16T03:09:21ZengUUM PRESSJournal of Business Management and Accounting2231-92982636-92492018-01-018110.32890/jbma2018.8.1.8801Are Corporate Governance Mechanisms Associated with Information Asymmetry Level among UAE Listed Companies?Nor Asma Lode0Saleh Salem Saeed Bajrei1Tunku Puteri Intan Safinaz School of Accountancy, College of Business, Universiti Utara Malaysia, Sintok, Kedah, MalaysiaTunku Puteri Intan Safinaz School of Accountancy, College of Business, Universiti Utara Malaysia, Sintok, Kedah, Malaysia Asymmetry of information involves the possession of information in different ways between the most informed stakeholders and the uninformed stakeholders which may affect the performance of companies. Using agency theory, this study investigates the relationship between corporate governance mechanisms and level of information asymmetry in UAE based on 64 annual reports for the year ended 2010. The findings indicate that board size and information asymmetry are positively related among UAE listed companies, while board ownership and company size are negatively related with information asymmetry. These results suggest that large size of the board of directors may lead to information asymmetry because they seem to be unable to monitor the management and protect the interest of shareholders. In addition, evidence of high information asymmetry among UAE companies imply that the implementation of the Code of Corporate Governance seems to be less likely to resolve agency problems due to asymmetric information. https://e-journal.uum.edu.my/index.php/jbma/article/view/8801Corporate governanceinformation asymmetryboardTobin's QUAE |
| spellingShingle | Nor Asma Lode Saleh Salem Saeed Bajrei Are Corporate Governance Mechanisms Associated with Information Asymmetry Level among UAE Listed Companies? Journal of Business Management and Accounting Corporate governance information asymmetry board Tobin's Q UAE |
| title | Are Corporate Governance Mechanisms Associated with Information Asymmetry Level among UAE Listed Companies? |
| title_full | Are Corporate Governance Mechanisms Associated with Information Asymmetry Level among UAE Listed Companies? |
| title_fullStr | Are Corporate Governance Mechanisms Associated with Information Asymmetry Level among UAE Listed Companies? |
| title_full_unstemmed | Are Corporate Governance Mechanisms Associated with Information Asymmetry Level among UAE Listed Companies? |
| title_short | Are Corporate Governance Mechanisms Associated with Information Asymmetry Level among UAE Listed Companies? |
| title_sort | are corporate governance mechanisms associated with information asymmetry level among uae listed companies |
| topic | Corporate governance information asymmetry board Tobin's Q UAE |
| url | https://e-journal.uum.edu.my/index.php/jbma/article/view/8801 |
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