Relationship between Information Asymmetry and Financial Restatement: the Approach of Effective Spread

Subject Areas : مدیریت

Mehdi Beshkooh ¹ , Somayeh Amiri ²

1 - Assistant Professor, Department of Accounting, Qazvin Branch, Islamic Azad University, Qazvin, Iran
2 - M.Sc. Student, Department of Accounting, Qazvin Branch, Islamic Azad University, Qazvin, Iran

Received: 2017-02-11 Accepted : 2017-02-11 Published : 2017-01-20

Keywords: Financial Restatement, Information Asymmetry, Bid – Ask Spread, Adverse Selection,

Abstract :

In this research examined the relationship between information asymmetry and financial restatement in listed companies in the Tehran Stock Exchange. For this purpose, Bid – Ask spread is used as an information asymmetry criterion. The result research using data on a sample of 89 listed companies in the Tehran Stock Exchange, over a 10 years period (1383 to 1392), suggest that a positive and significant relationship   between Bid – Ask spread and information asymmetry exists.