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Information Asymmetry Problematic and Voluntary Disclosure in Companies

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Ethics and Sustainability in Accounting and Finance, Volume III

Abstract

Information considered as one of the most valuable elements of today’s world is an integral part of changing and transforming living conditions. Although the information is an important asset for companies, it is also extremely important for information users. The public disclosures made by the companies have an important role in meeting the detailed information needs of the parties interested in the companies. Information asymmetry can occur between the parties, as the managers have more information about the current situation and future perspectives of the companies than the investors. At this point, information asymmetry between company and information users can be reduced with public disclosure. The purpose of this study is to examine how voluntary disclosure affects information asymmetry. In this context, 138 companies operating in the industrial index of Borsa İstanbul in Turkey were taken into consideration. As a result of the multiple linear regression analysis (stepwise method), it is found that as the voluntary disclosure levels of companies increase, the information asymmetry decreases. In addition, the Tobin Q ratio has a negative and significant effect on information asymmetry. Also, the effect of the Market Value/Book Value ratio on information asymmetry is found to be positive and significant.

This study is derived from the doctoral dissertation titled “The Relationship Between Voluntary Disclosure and Information Asymmetry: An Application in Borsa İstanbul”.

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Authors and Affiliations

  1. Department of Business Administration in the Field of Accounting and Finance, Ondokuz Mayıs University, Samsun, Turkey

    Fevziye Kalıpçı Çağıran

  2. Department of Business Administration in the Field of Accounting and Finance, Ondokuz Mayıs University, Samsun, Turkey

    İdris Varıcı

  3. The Grand National Assembly of Turkey, Ankara, Turkey

    Fevzi Serkan Özdemir

Authors
  1. Fevziye Kalıpçı Çağıran
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  2. İdris Varıcı
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  3. Fevzi Serkan Özdemir
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Correspondence to Fevziye Kalıpçı Çağıran .

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Editors and Affiliations

  1. Trakya University, Balkan Yerleşkesi, Edirne, Turkey

    Kıymet Tunca Çalıyurt

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Kalıpçı Çağıran, F., Varıcı, İ., Özdemir, F.S. (2021). Information Asymmetry Problematic and Voluntary Disclosure in Companies. In: Çalıyurt, K.T. (eds) Ethics and Sustainability in Accounting and Finance, Volume III. Accounting, Finance, Sustainability, Governance & Fraud: Theory and Application. Springer, Singapore. https://doi.org/10.1007/978-981-33-6636-7_8

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