Information asymmetry and its effects on the capital market
The basis for decision-making by capital market participants is information disseminated by companies. Utilizing this information and making the right decision is possible when the mentioned information is provided in a timely manner, relevant, complete, accurate and understandable. On the other han...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Rasht: Javad Deljoo Shahir
2018-09-01
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| Series: | New Applied Studies in Management, Economics & Accounting |
| Subjects: | |
| Online Access: | https://www.nasme-journal.ir/article_181566_d41d8cd98f00b204e9800998ecf8427e.pdf |
| _version_ | 1797634115083698176 |
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| author | Reza Pirayesh Saeed Mozaffari |
| author_facet | Reza Pirayesh Saeed Mozaffari |
| author_sort | Reza Pirayesh |
| collection | DOAJ |
| description | The basis for decision-making by capital market participants is information disseminated by companies. Utilizing this information and making the right decision is possible when the mentioned information is provided in a timely manner, relevant, complete, accurate and understandable. On the other hand, accessibility method to information is also very important. If the transfer of information is uneven and asymmetric between individuals and the so-called information asymmetry occurs, it can cause different results for a single subject. Since this phenomenon has various adverse consequences such as reduced market efficiency, increased transaction costs, minimal investor participation, market weakness, low liquidity and generally reduced profit from trading in capital markets. This research is studied by the review-description method. Firstly, the concept of information asymmetry and its effects on the capital market and secondly strategies to reduce information asymmetry, are discussed. |
| first_indexed | 2024-03-11T12:03:27Z |
| format | Article |
| id | doaj.art-3610376b1b6646f5aa6254723d89ffd9 |
| institution | Directory Open Access Journal |
| issn | 2783-3119 |
| language | English |
| last_indexed | 2024-03-11T12:03:27Z |
| publishDate | 2018-09-01 |
| publisher | Rasht: Javad Deljoo Shahir |
| record_format | Article |
| series | New Applied Studies in Management, Economics & Accounting |
| spelling | doaj.art-3610376b1b6646f5aa6254723d89ffd92023-11-07T18:01:23ZengRasht: Javad Deljoo ShahirNew Applied Studies in Management, Economics & Accounting2783-31192018-09-0113839610.22034/nasmea.2018.181566181566Information asymmetry and its effects on the capital marketReza Pirayesh0Saeed Mozaffari1Assistant Professor, Department of Management and Accounting, Zanjan University, IranMaster's Student in Financial Management, Roozbeh Zanjan Institute of Higher Education, IranThe basis for decision-making by capital market participants is information disseminated by companies. Utilizing this information and making the right decision is possible when the mentioned information is provided in a timely manner, relevant, complete, accurate and understandable. On the other hand, accessibility method to information is also very important. If the transfer of information is uneven and asymmetric between individuals and the so-called information asymmetry occurs, it can cause different results for a single subject. Since this phenomenon has various adverse consequences such as reduced market efficiency, increased transaction costs, minimal investor participation, market weakness, low liquidity and generally reduced profit from trading in capital markets. This research is studied by the review-description method. Firstly, the concept of information asymmetry and its effects on the capital market and secondly strategies to reduce information asymmetry, are discussed.https://www.nasme-journal.ir/article_181566_d41d8cd98f00b204e9800998ecf8427e.pdfinformation asymmetrycapital marketwrong choicemoral hazardefficient market |
| spellingShingle | Reza Pirayesh Saeed Mozaffari Information asymmetry and its effects on the capital market New Applied Studies in Management, Economics & Accounting information asymmetry capital market wrong choice moral hazard efficient market |
| title | Information asymmetry and its effects on the capital market |
| title_full | Information asymmetry and its effects on the capital market |
| title_fullStr | Information asymmetry and its effects on the capital market |
| title_full_unstemmed | Information asymmetry and its effects on the capital market |
| title_short | Information asymmetry and its effects on the capital market |
| title_sort | information asymmetry and its effects on the capital market |
| topic | information asymmetry capital market wrong choice moral hazard efficient market |
| url | https://www.nasme-journal.ir/article_181566_d41d8cd98f00b204e9800998ecf8427e.pdf |
| work_keys_str_mv | AT rezapirayesh informationasymmetryanditseffectsonthecapitalmarket AT saeedmozaffari informationasymmetryanditseffectsonthecapitalmarket |