IDEAS home Printed from https://ideas.repec.org/a/wly/finmar/v24y2015i2-3p127-157.html
   My bibliography  Save this article

Governance Quality and Information Asymmetry

Author

Listed:
  • Ahmed Elbadry
  • Dimitrios Gounopoulos
  • Frank Skinner

Abstract

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 are 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.

Suggested Citation

  • Ahmed Elbadry & Dimitrios Gounopoulos & Frank Skinner, 2015. "Governance Quality and Information Asymmetry," Financial Markets, Institutions & Instruments, John Wiley & Sons, vol. 24(2-3), pages 127-157, May.
    • Handle: RePEc:wly:finmar:v:24:y:2015:i:2-3:p:127-157
    DOI: 10.1111/fmii.12026
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/fmii.12026
    Download Restriction: no
    File URL: https://libkey.io/10.1111/fmii.12026?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:finmar:v:24:y:2015:i:2-3:p:127-157. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.