Associate Prof., Department of Finance, Faculty of Management and Economics, Urmia University, West Azarbaijan, Urmia, Iran.
<strong>Objective:</strong> This research is aimed at investigating the impact of internal and external corporate governance on the relationship between information asymmetry and investment efficiency. <strong>Methods:</strong> For the purpose of analyzing the research hypoth...
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| Format: | Article |
| Language: | fas |
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University of Tehran
2020-07-01
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| Series: | تحقیقات مالی |
| Subjects: | |
| Online Access: | https://jfr.ut.ac.ir/article_77149_2ce08e51a062139240ab7bcdd2c37209.pdf |
| _version_ | 1819017328456630272 |
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| author | Gholamreza Mansourfar Samira Joudi Ehsan Poursoleiman |
| author_facet | Gholamreza Mansourfar Samira Joudi Ehsan Poursoleiman |
| author_sort | Gholamreza Mansourfar |
| collection | DOAJ |
| description | <strong>Objective:</strong> This research is aimed at investigating the impact of internal and external corporate governance on the relationship between information asymmetry and investment efficiency.
<strong>Methods:</strong> For the purpose of analyzing the research hypothesis, 106 publicly traded firms on the Tehran Stock Exchange, between 2009 and 2018, have been selected using the elimination method. The analysis of the hypotheses was carried out by using a multivariate regression model with panel data method and employing the fixed effects approach.
<strong>Results:</strong> According to theoretical bases and research finding, information asymmetry has a negative and significant relationship with investment efficiency. Also, corporate governance variables, in both external and internal governance, and both variables of information asymmetry and both dimensions of corporate have a positive and significant relationship with investment efficiency.
<strong>Conclusion:</strong> The results of the research show that the existence of asymmetric information and ambiguity in financial information may lead to inefficient investments. Hence, one of the ways to reduce information asymmetry and increase investment efficiency is enhanced corporate governance quality. According to the existing principle, current expectations, and the findings of this study, the interaction of information and corporate governance have a positive and significant relationship with investment efficiency. This means that in the condition of information asymmetry, the existence of internal and external corporate governance reduces inefficient investments and urges managers to make optimal and efficient investment decisions. |
| first_indexed | 2024-12-21T03:01:47Z |
| format | Article |
| id | doaj.art-b380b5d3ec254ad69b9e8cee5ff82752 |
| institution | Directory Open Access Journal |
| issn | 1024-8153 2423-5377 |
| language | fas |
| last_indexed | 2024-12-21T03:01:47Z |
| publishDate | 2020-07-01 |
| publisher | University of Tehran |
| record_format | Article |
| series | تحقیقات مالی |
| spelling | doaj.art-b380b5d3ec254ad69b9e8cee5ff827522022-12-21T19:18:09ZfasUniversity of Tehranتحقیقات مالی1024-81532423-53772020-07-0122222724810.22059/frj.2020.279145.100685577149Associate Prof., Department of Finance, Faculty of Management and Economics, Urmia University, West Azarbaijan, Urmia, Iran.Gholamreza Mansourfar0Samira Joudi1Ehsan Poursoleiman2Associate Prof., Department of Finance, Faculty of Management and Economics, Urmia University, West Azarbaijan, Urmia, Iran.MSc., Department of Accountin, Faculty of Management and Economics, Urmia University, West Azarbaijan, Urmia, Iran.MSc., Department of Accountin, Faculty of Management and Economics, Urmia University, West Azarbaijan, Urmia, Iran.<strong>Objective:</strong> This research is aimed at investigating the impact of internal and external corporate governance on the relationship between information asymmetry and investment efficiency. <strong>Methods:</strong> For the purpose of analyzing the research hypothesis, 106 publicly traded firms on the Tehran Stock Exchange, between 2009 and 2018, have been selected using the elimination method. The analysis of the hypotheses was carried out by using a multivariate regression model with panel data method and employing the fixed effects approach. <strong>Results:</strong> According to theoretical bases and research finding, information asymmetry has a negative and significant relationship with investment efficiency. Also, corporate governance variables, in both external and internal governance, and both variables of information asymmetry and both dimensions of corporate have a positive and significant relationship with investment efficiency. <strong>Conclusion:</strong> The results of the research show that the existence of asymmetric information and ambiguity in financial information may lead to inefficient investments. Hence, one of the ways to reduce information asymmetry and increase investment efficiency is enhanced corporate governance quality. According to the existing principle, current expectations, and the findings of this study, the interaction of information and corporate governance have a positive and significant relationship with investment efficiency. This means that in the condition of information asymmetry, the existence of internal and external corporate governance reduces inefficient investments and urges managers to make optimal and efficient investment decisions.https://jfr.ut.ac.ir/article_77149_2ce08e51a062139240ab7bcdd2c37209.pdfinvestment efficiencyinformation asymmetryinternal corporate governanceexternal corporate governance |
| spellingShingle | Gholamreza Mansourfar Samira Joudi Ehsan Poursoleiman Associate Prof., Department of Finance, Faculty of Management and Economics, Urmia University, West Azarbaijan, Urmia, Iran. تحقیقات مالی investment efficiency information asymmetry internal corporate governance external corporate governance |
| title | Associate Prof., Department of Finance, Faculty of Management and Economics, Urmia University, West Azarbaijan, Urmia, Iran. |
| title_full | Associate Prof., Department of Finance, Faculty of Management and Economics, Urmia University, West Azarbaijan, Urmia, Iran. |
| title_fullStr | Associate Prof., Department of Finance, Faculty of Management and Economics, Urmia University, West Azarbaijan, Urmia, Iran. |
| title_full_unstemmed | Associate Prof., Department of Finance, Faculty of Management and Economics, Urmia University, West Azarbaijan, Urmia, Iran. |
| title_short | Associate Prof., Department of Finance, Faculty of Management and Economics, Urmia University, West Azarbaijan, Urmia, Iran. |
| title_sort | associate prof department of finance faculty of management and economics urmia university west azarbaijan urmia iran |
| topic | investment efficiency information asymmetry internal corporate governance external corporate governance |
| url | https://jfr.ut.ac.ir/article_77149_2ce08e51a062139240ab7bcdd2c37209.pdf |
| work_keys_str_mv | AT gholamrezamansourfar associateprofdepartmentoffinancefacultyofmanagementandeconomicsurmiauniversitywestazarbaijanurmiairan AT samirajoudi associateprofdepartmentoffinancefacultyofmanagementandeconomicsurmiauniversitywestazarbaijanurmiairan AT ehsanpoursoleiman associateprofdepartmentoffinancefacultyofmanagementandeconomicsurmiauniversitywestazarbaijanurmiairan |