The purpose of this study is to investigate the effect of corporate governance, the ownership percentage of major and institutional shareholders, auditor change, audit committee independence, and information asymmetry on accounting conservatism. Basu's model (1997) has been used to evaluate the relationship among variables. The present study is a post-event study, and the research sample includ...

This paper presents a theory, where managers can use the liquidity of securities as a choice variable to screen for “deep pocket” investors, those that have a low likelihood of facing a liquidity shock. We assume that there is information asymmetry about the quality of the manager between the existing investors and the market. The manager then faces a “lemons” problem when he has to raise funds...

U.S. mortgage markets have evolved radically in recent years. An important part of the change has been the rise of the “subprime” market, characterized by loans with high default rates, dominance by specialized subprime lenders rather than full-service lenders, and little coverage by the secondary mortgage market. In this paper we examine these and other “stylized facts” with standard tools use...

Market crashes are rare events with catastrophic consequences. Both the degree of information asymmetry and the risk premium associated with it increase on these days. This should affect equity prices. The increase in information asymmetry also reduces the liquidity at a time when it is particularly valued by investors. If accounting quality reduces the uncertainty concerning firms’ value, the ...

Information asymmetry is an important reason that causes external financing constraints. Because reputation has the function of signal transmission, a better reputation of an entrepreneur can reduce the degree of the firm information asymmetry and alleviate financing constraints of the firm. Based on the grouped sample of 94 listed companies of China from 2007 to 2009, this paper did empirical ...

It is worth noticing that a great deal of interest has recently been paid by the financial literature with respect to the relationship prevailing between the information asymmetry and the financing decisions regarding 150 firms listed on the SBF 250 index over the period ranging from 2005 to 2012. The achieved estimation results have revealed that most variables turn out to be significantly cor...