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Study of Information Asymmetry Effect on Price Synchronism in Tehran Stock Exchange

Author

Listed:
  • Morteza Doosti Seyyed Shekari

    (Department of Accounting, Collage of Humanities, Kermanshah science and Research Branch, Islamic Azad University, Kermanshah, Iran)

  • Babak Jamshidinavid

    (Department of Accounting, College of Humanities, Kermanshah Branch, Islamic Azad University, Kermanshah, Iran)

Abstract

Accounting profit always as an exhibited item in financial statements has been considered by investors whom are attended as the most significant users of financial statements, so profit is a basis for the most economical decisions. In the research, the effect of information asymmetry with price synchronism (a criterion to measure the proportional amount of corporate special information, which has been reflected in price) have been investigated in accepted corporations in Tehran stock exchange. In research information asymmetry is independent variable and price synchronicity is dependent variable. Price Synchronism is an amplitude which shows industry and market returns and stock return differs in corporation level. The research is an applied research based on its aim, is measuring and describing based on its performance and is one of the best. 127 corporations from 2010 to 2014 have been chosen by systematic deletion. To test research hypotheses Panel Data method and Fixed Effect method have been used. Research conclusions show that there is no relationship between information asymmetry with price synchronism.

Suggested Citation

  • Morteza Doosti Seyyed Shekari & Babak Jamshidinavid, 2017. "Study of Information Asymmetry Effect on Price Synchronism in Tehran Stock Exchange," International Journal of Economics and Financial Issues, Econjournals, vol. 7(4), pages 343-346.
    • Handle: RePEc:eco:journ1:2017-04-43
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    References listed on IDEAS

    as
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    3. Gilles Hilary & Gary C. Biddle, 2006. "Accounting Quality and Firm-Level Capital Investment," Post-Print hal-00481720, HAL.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Commitment Items Quality; Information Asymmetry; Price Synchronism;
    All these keywords.

    JEL classification:

    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • E37 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Forecasting and Simulation: Models and Applications
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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