• The Journal of Industrial Distribution & Business
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• v.8 no.1
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• pp.33-39
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• 2017

Purpose - The main purpose of the current study is to examine the impact of accounting information quality and information asymmetry on the underinvestment phenomenon among the listed companies on the Tehran Stock Exchange (TSE). Research design, data, and methodology - The population includes 94 firms selected through systematic sampling. The data is collected from the audited financial statements of the firms provided by TSE's website from 2010 to 2015. Accounting information quality and information asymmetry is considered as independent variables, and their impact is examined on the dependent variable (underinvestment). Results - The statistical results, based on data collected from 94 listed companies on the TSE during 2010-2015, revealed positive impact of accounting information quality and positive impact of information asymmetry on underinvestment. There was a significant relationship between accrual quality (AQ) and underinvestment, and spread and underinvestment. The results also showed that information asymmetry is the main factor in the creation underinvestment. Conclusions - Findings of this article can assist accounting researchers and theoreticians in comparing Real world facts with hypotheses developed with respect to accounting information quality, information asymmetry and underinvestment. However, the results of fuzzy regression analysis indicate significant relationships between the independent variable except underinvestment.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.34 no.2
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• pp.35-48
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• 2011

In this paper, we have studied the impact of adopting XBRL (eXtensible Business Reporting Language) on information asymmetry in capital markets with the additional research on the usefulness of XBRL data how to improve the quality of accounting information. From the Kosdaq XBRL service, the samples are selected including 38 adopted companies and the 30 non-adopted companies for the paired analysis. The daily stock return volatility (VOLA) as independent variable and other several controlling variables have been added for the regression analysis to measure the impact on information asymmetry in capital markets. he analytical result indicated that the asymmetry hypotheses that XBRL data will give a significant impact on the capital market and will reduce the volatility, which are expected in the hypotheses. This is the first analytical research on the capital market and its impacts to the capital market from adopting XBRL based accounting information. Additionally, the analysis showed the impacts on the reporting cycle of accounting information and its usefulness of accounting data itself.

• Journal of Convergence for Information Technology
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• v.7 no.2
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• pp.125-130
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• 2017

In the business environment of the modern society, it is not possible for the company, which is a producer of accounting information, to provide accounting information to the users of accounting information because it can not satisfy the information demand of the accounting information users due to the problem of information asymmetry. Therefore, the purpose of this study is to find out what information should be provided for satisfying the information needs of users of accounting information. This study investigates the qualitative characteristics of accounting information based on K-IFRS in the provision of accounting information and conducts empirical studies based on the users of accounting information of listed companies and unlisted companies. And how to improve the satisfaction. As a result of empirical research, it was confirmed that the accounting information satisfying the qualitative characteristics is useful for meeting the information needs of users of accounting information.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.12
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• pp.795-807
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• 2020

The more liquid the capital market, the more attractive it will be for investors to place their money in the capital market. Therefore, the purpose of this study is to investigate the factors that influence stock liquidity of manufacturing sector companies listed on the stock exchange in Indonesia. The independent variables used in this study are forward-looking information disclosure, institutional ownership, foreign ownership, and board activity with information asymmetry as an intervening variable and stock liquidity as the dependent variable. The population of this study is manufacturing sector companies listed on the Indonesian stock exchange (IDX). Samples are selected based on the random sampling method, and the number of samples is calculated based on the Slovin formula. The sample was 59 manufacturers, and data was annual reports (for 2 years) and stock transactions from 2016 to 2017. The results of the study showed that forward-looking information disclosure had a significant effect on information asymmetry. Information asymmetry and foreign ownership have a significant impact on stock liquidity, whereas information asymmetry mediates the relationship between forward-looking disclosures and stock liquidity. Furthermore, the accuracy of information about the certainty of business activity both now and in the future can instill confidence in stakeholders in interacting and cooperating.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.11
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• pp.853-866
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• 2020

The purposes of this research were: 1) to investigate the effect of participatory management on financial information asymmetry, 2) to investigate the effect of corporate governance on financial information asymmetry, 3) to examine the influences of benefits incentives on financial information asymmetry, and 4) to test the mediating effects of benefits incentive that influences the relationship between participatory management, corporate governance, and financial information asymmetry. The research sample consisted of 388 Thai-listed firms. Data were collected through a survey questionnaire. Descriptive analysis, Multiple Regression Analysis, and Structural Equation Modeling were used for the data analysis. The results revealed: 1) participatory management and participation in evaluation had a negative influence on financial information asymmetry. 2) Corporate governance and the rights of shareholders had a negative influence on financial information asymmetry. 3) Benefits incentive was negatively associated with financial information asymmetry. 4) The model's influences of participatory management, corporate governance on the reduction of financial information asymmetry through benefits incentive as mediator fit the empirical data (Chi-square = 104.459, df = 84, p = 0.065, GFI = 0.967, RMSEA = 0.025). The variables in the model explained 78.00% and 4.70 % of the variance of benefits incentive and financial information asymmetry, respectively.

• International journal of advanced smart convergence
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• v.8 no.3
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• pp.193-200
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• 2019

Accruals-Quality(AQ) is an important proxy for evaluating the quality of accounting information disclosures. High-quality accounting information will provide high predictability and precision in the disclosure of earnings and will increase the response to stock prices. And high Accruals-Quality, such as mitigating heterogeneity in accounting information interpretation, provides information usefulness in capital markets. The purpose of this study is to suggest how AQ, which represents the quality of accounting information disclosure, is transformed into digitized data in real-time in combination with IT information technology and provided to financial analyst's information environment in real-time. And AQ is a framework for predictive analysis through big data log analysis system. This real-time information from AQ will help financial analysts to increase their activity and reduce information asymmetry. In addition, AQ, which is provided in real time through IT information technology, can be used as an important basis for decision-making by users of capital market information, and is expected to contribute in providing companies with incentives to voluntarily improve the quality of accounting information disclosure.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.10
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• pp.51-61
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• 2020

The study aims to compare whether using Earnings Response Coefficient (ERC) is better than using the new concept of Accounting Earnings Response Coefficient (AERC) in determining the earnings quality response coefficient value. Also, the study seeks to explain the effect of company characteristics and corporate governance on AERC through voluntary disclosure and information asymmetry. Research samples include 69 manufacturing companies listed on the Indonesian Stock Exchange over the period 2014-2017. The data come from annual reports, stock market prices, CSPI, EPS, stock returns and market returns. The research model is tested using the structural equation model (SEM) with partial least square (PLS). The results showed the value of the earnings response coefficient produced by AERC and ERC was different. Earnings quality resulting from AERC regression by adding CFO values better reflects the actual earnings quality. These results are consistent with the concept built from the proposition about earnings quality at AERC, that quality earnings are informative accounting earnings. The theoretical findings of this study provide an explanation that operational cash flow plays a role in evaluating earnings quality, while providing reinforcement that the ERC regression model fails to detect stock market reactions to information relevant to the aggregated values of accounting earnings.

• Management & Information Systems Review
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• v.12
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• pp.137-160
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• 2003

The association between accounting earnings and the stock price of an entity is the subject that has been most heavily researched during the past 25 years in accounting literature. Researcher's common finding is that there are positive relationships between accounting earnings and stock prices. However, the explanatory power of accounting earnings which was measured by $R^2$ of regression functions used was rather low. To be connected with these low results, The prior studies propose that there will be additional information, errors in variables. This study investigates empirically determinants of earnings response coefficients(ERCs), which measure the correlation between earnings and stock prices, using earnings level / change, as the dependent variable in the return/earnings regression. Specifically, the thesis tests whether the factors such as earnings persistence, growth, systematic risk, image, information asymmetry and firm size. specially, the determinable variables of ERC are explained in detail. The image / information asymmetry variables are selected to be connected with additional information stand point, The debt / growth variables are selected to be connected with errors in variables. In this study, The sample of firms, listed in Korean Stock Exchange was drawn from the KIS-DATA and was required to meet the following criteria: (1) Annual accounting earnings were available over the 1986-1999 period on the KIS-FAS to allow computation of variables parameter; (2) sufficient return data for estimation of market model parameters were available on the KIS-SMAT month returns: (3) each firm had a fiscal year ending in December throughout the study period. Implementation of these criteria yielded a sample of 1,141 firm-year observation over the 10-year(1990-1999) period. A conventional regression specification would use stock returns(abnormal returns) as a dependent variable and accounting earnings(unexpected earnings) changes interacted with other factors as independent variables. In this study, I examined the relation between other factors and the RRC by using reverse regression. For an empirical test, eight hypotheses(including six lower-hypotheses) were tested. The results of the performed empirical analysis can be summarized as follows; The first, The relationship between persistence of earnings and ERC have significance of each by itself, this result accord with one of the prior studies. The second, The relationship between growth and ERC have not significance. The third, The relationship between image and ERC have significance of each by itself, but a forecast code doesn't present. This fact shows that image cost does not effect on market management share, is used to prevent market occupancy decrease. The fourth, The relationship between information asymmetry variable and ERC have significance of each by. The fifth, The relationship between systematic risk$(\beta)$ and ERC have not significance. The sixth, The relationship between debt ratio and ERC have significance of each by itself, but a forecast code doesn't present. This fact is judged that it is due to the effect of financial leverage effect and a tendency of interest.

• Journal of Distribution Science
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• v.20 no.4
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• pp.95-100
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• 2022

Purpose: This study aimed to investigate whether distribution and service companies maintained their accounting information quality and provided reliable information despite the economic changes occurring after the outbreak of the COVID-19 pandemic in Korea. The distribution industry has enjoyed increased demand as many companies expanded their untact distribution channels, including to online sales. However, as the pandemic drags on, their future prospects remain uncertain. Research design, data, and methodology: In this study, we define 2018-2019 as the "pre COVID-19 period" and 2020 as the "post COVID-19 period." An empirical analysis was performed using a regression model that includes POST, the independent variable, indicating the post COVID-19 period, and discretionary accruals(DA), a proxy for earnings management, as a dependent variable. Results: The analysis shows that the coefficient of POST is significantly positive (+) for the dependent variable DA. This finding suggests that distribution and service companies engaged in more earnings management during the post COVID-19 period than during the pre COVID-19 period, indicating their awareness of the uncertainty of future business performance as the pandemic persists. An additional analysis confirmed that smaller companies with fewer stakeholders and higher information asymmetry tend to engage more in earnings management than larger companies.

• The Journal of the Korea Contents Association
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• v.19 no.5
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• pp.280-286
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• 2019

This study first examines whether the matching principle reduces information asymmetry and verifies the effect on earnings sustainability and information asymmetry. In the presence of information asymmetry between managers and information users, managers can reduce information asymmetry by increasing the quality of earnings. Information asymmetry is measured by the financial analysts' earnings forecast variance. When we look at the results of previous studies, verify whether information asymmetry decreases as the response to the revenue cost increases and whether negative relationship between profit persistence and information asymmetry appears when the response to the revenue cost is high. As a result, firms with high revenue cost response showed a decrease in information asymmetry. The persistence of the earningss from the high earnings-cost response shows that the analysts' earnings forecast dispersion decreases. This means that the better the response to the revenue cost, the better the quality of the earnings and the less the information risk about the uncertainty of the enterprise. This study is different from the previous studies in that it analyzed whether the persistence of the earnings that responded to the high revenue cost reduces the information asymmetry. The results of this study suggest that managers can reduce the information asymmetry by carrying out appropriate revenue - cost responses, which provides important implications for stakeholders who use accounting earnings information.