The role of economic policy uncertainty in the relationship between voluntary disclosure of information and information asymmetry

Subject Areas : Corporate Finance

Ghasem Ghasemi ¹ , Ahmad Khodamipour ^{2 *} , Kazem Shamsadini ³

1 - Department of Accounting, Shahid Bahonar University of Kerman, Kerman, Iran.
2 - Department of Accounting, Shahid Bahonar University of Kerman, Kerman, Iran.
3 - Department of Accounting, Shahid Bahonar University of Kerman, Kerman, Iran.

Received: 2021-12-12 Accepted : 2022-04-20 Published : 2022-05-22

Keywords: Information Asymmetry, voluntary disclosure of information, Economic policy uncertainty,

Abstract :

Purpose: The purpose of this study is to investigate the role of economic policy uncertainty in the relationship between voluntary disclosure of information and information asymmetry in companies listed on the Tehran Stock Exchange.Methodology:This research is descriptive, correlational and post-event. In order to investigate this issue, research hypotheses based on a statistical sample consisting of 138 firms during the years 2009 to 2018 and were tested using multivariate regression models.Findings: The results show that the relationship between voluntary disclosure of information and information asymmetry is statistically negative and significant. The results also showed that economic policy uncertainty as a moderating variable weakens the relationship between voluntary disclosure of information and information asymmetry. This means that in a situation of economic policy uncertainty, with the reduction of inefficient fiscal and monetary policies and also the reduction of public distrust in economic decisions, voluntary disclosure of information decreases and as a result, information asymmetry increases. Economic uncertainty with disruption of the price system leads liquidity to unproductive activities and reduces the inflow of liquidity to production and thus reduces corporate investment.Originality / Value: The results of this study, in addition to developing the literature on economic policy uncertainty and information asymmetry, help capital market participants, decision makers, analysts and potential and actual investors of the Tehran Stock Exchange to analyze investment plans in financial assets and Securities should pay special attention to this important issue. The results also made financial and economic policy makers seek to create stability and create a safe investment environment, which is one of the basic conditions for the country's economic development, and by formulating long-term economic plans and taking into account the country's political and economic conditions, the necessary ground. Provide information to reduce asymmetry.

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