Impact of Frequency of Financial Reporting on Information Asymmetry and Cost of Equity

Timeliness of financial reporting is one of the important factors in the quality of firms' financial information, since such are porting can lead to efficient utilization of information for users. Providing more timely information may reduce information asymmetry between acompany and its stockh...

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Autores principales:	Gholam Hossein Assadi, Morteza Khaleghi
Formato:	article
Lenguaje:	FA
Publicado:	Shahid Bahonar University of Kerman 2015
Materias:	financial reporting frequency information asymmetry cost of equity Accounting. Bookkeeping HF5601-5689
Acceso en línea:	https://doaj.org/article/f076b0727bda4b11b0c4e14dfc9fd975
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spelling	oai:doaj.org-article:f076b0727bda4b11b0c4e14dfc9fd9752021-11-04T19:48:49ZImpact of Frequency of Financial Reporting on Information Asymmetry and Cost of Equity2008-89142476-292X10.22103/jak.2015.1407https://doaj.org/article/f076b0727bda4b11b0c4e14dfc9fd9752015-11-01T00:00:00Zhttps://jak.uk.ac.ir/article_1407_7aaa11c510fb6873a8b1d2291b284dab.pdfhttps://doaj.org/toc/2008-8914https://doaj.org/toc/2476-292XTimeliness of financial reporting is one of the important factors in the quality of firms' financial information, since such are porting can lead to efficient utilization of information for users. Providing more timely information may reduce information asymmetry between acompany and its stockholders. Information asymmetry causes costs of financing from company’s owned sources and from the other sources to be different. This makes financing from the other sources difficult. This study aimed at examining the impacts of financial reporting frequency on information asymmetry and on cost of equity. To measure information asymmetry and cost of equity, the range of bid-ask spread of daily treading, and the ratio of earnings to price were used, respectively. In this study, the data consisted of 71 companies listed in the Tehran Stock Exchange in the period 2006 to 2011, and data analysis and test of hypothesis were carried out by ordinary least squares method. Results showed that there are significant negative relationships between financial reporting frequency, and the variables of information asymmetry and cost of equity. That is, in the years as financial reporting frequency increased, information asymmetry and cost of equity decreased.Gholam Hossein AssadiMorteza KhaleghiShahid Bahonar University of Kermanarticlefinancial reporting frequencyinformation asymmetrycost of equityAccounting. BookkeepingHF5601-5689FAمجله دانش حسابداری, Vol 6, Iss 22, Pp 7-28 (2015)
institution	DOAJ
collection	DOAJ
language	FA
topic	financial reporting frequency information asymmetry cost of equity Accounting. Bookkeeping HF5601-5689
spellingShingle	financial reporting frequency information asymmetry cost of equity Accounting. Bookkeeping HF5601-5689 Gholam Hossein Assadi Morteza Khaleghi Impact of Frequency of Financial Reporting on Information Asymmetry and Cost of Equity
description	Timeliness of financial reporting is one of the important factors in the quality of firms' financial information, since such are porting can lead to efficient utilization of information for users. Providing more timely information may reduce information asymmetry between acompany and its stockholders. Information asymmetry causes costs of financing from company’s owned sources and from the other sources to be different. This makes financing from the other sources difficult. This study aimed at examining the impacts of financial reporting frequency on information asymmetry and on cost of equity. To measure information asymmetry and cost of equity, the range of bid-ask spread of daily treading, and the ratio of earnings to price were used, respectively. In this study, the data consisted of 71 companies listed in the Tehran Stock Exchange in the period 2006 to 2011, and data analysis and test of hypothesis were carried out by ordinary least squares method. Results showed that there are significant negative relationships between financial reporting frequency, and the variables of information asymmetry and cost of equity. That is, in the years as financial reporting frequency increased, information asymmetry and cost of equity decreased.
format	article
author	Gholam Hossein Assadi Morteza Khaleghi
author_facet	Gholam Hossein Assadi Morteza Khaleghi
author_sort	Gholam Hossein Assadi
title	Impact of Frequency of Financial Reporting on Information Asymmetry and Cost of Equity
title_short	Impact of Frequency of Financial Reporting on Information Asymmetry and Cost of Equity
title_full	Impact of Frequency of Financial Reporting on Information Asymmetry and Cost of Equity
title_fullStr	Impact of Frequency of Financial Reporting on Information Asymmetry and Cost of Equity
title_full_unstemmed	Impact of Frequency of Financial Reporting on Information Asymmetry and Cost of Equity
title_sort	impact of frequency of financial reporting on information asymmetry and cost of equity
publisher	Shahid Bahonar University of Kerman
publishDate	2015
url	https://doaj.org/article/f076b0727bda4b11b0c4e14dfc9fd975
work_keys_str_mv	AT gholamhosseinassadi impactoffrequencyoffinancialreportingoninformationasymmetryandcostofequity AT mortezakhaleghi impactoffrequencyoffinancialreportingoninformationasymmetryandcostofequity
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Impact of Frequency of Financial Reporting on Information Asymmetry and Cost of Equity

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