The Effect of Information Asymmetry on the Relationship between Firm Geographical Location and Future Stock Price Crash Risk

The aim of research is to investigate the effect of information asymmetry on the relationship between geographical location of firm and risk of stock price crash in the Iranian listed companies in Tehran stock exchange. For this Purpose, data of 110 listed companies was gathered and analyzed periodically in 2016. Distance Cosine index was used for geographical location, as the independent variable, and negative skewness criterion stock return was utilized for the risk of falling stock price (dependent variable). Also, information asymmetry was considered as moderating variable. The results indicated that there is a significant positive relationship between geographical location of firm and risk of falling stock price and also, information asymmetry moderates this relation.