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Information Asymmetry and Earnings Stability in Financially Insolvent Companies

Academic Journal of Accounting and Economic Researches

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Field Value
 
Title Information Asymmetry and Earnings Stability in Financially Insolvent Companies
 
Creator Rashidi, Somayeh
Vaeez, S. Ali
Ahmadi, Mohammad Ramazan
 
Description The purpose of this study was to investigate the relationship between information asymmetry and the earnings stability in the financially insolvent companies listed in Tehran Stock Exchange. Earnings stability means earnings repetition in the next periods. To measure the dependent variable, i.e. earnings stability, the estimation of the future and current earnings model is used. To test the research hypotheses the data related to 457 companies listed in Tehran Stock Exchange as the statistical sample and for the period of 2006-2015 have been analyzed using combinational data analysis method. In order to estimate the appropriate models of hypotheses testing in combinational data Chow and Hausman tests were used. The research results suggest that there is a negative and significant relationship between information asymmetry and earnings stability. There is no significant difference in the relationship between information asymmetry and earnings stability in financially insolvent companies and non-insolvent companies. Increasing the probability of bankruptcy of the company, the relationship between information asymmetry and earnings stability does not change.
 
Publisher Academic Journal of Accounting and Economic Researches ISSN 2333-0783
 
Contributor —
 
Date 2018-03-10
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://worldofresearches.com/ojs-2.4.4-1/index.php/ajaer/article/view/661
 
Source Academic Journal of Accounting and Economic Researches ISSN 2333-0783; Vol 6, No 2 (2017): April 2017
2333-0783
2375-7493
 
Language eng
 
Relation http://worldofresearches.com/ojs-2.4.4-1/index.php/ajaer/article/view/661/449
 
Rights Copyright (c) 2018 Academic Journal of Accounting and Economic Researches ISSN 2333-0783
http://creativecommons.org/licenses/by-nc/4.0