The Survey of Information Content of Corporate Earning Information Disclosure and Its Effect on Liquidity and Information Asymmetry in Tehran Stock Exchange
Quarterly Journal of Securities Exchange

Quarterly Journal of Securities Exchange

The Survey of Information Content of Corporate Earning Information Disclosure and Its Effect on Liquidity and Information Asymmetry in Tehran Stock Exchange

Authors
Mohamad Esmaeil Fadaeinejad
Navid Khoramnia
Abstract
In this research, the relationship between three indices of earning information disclosure, liquidity and information asymmetry in Tehran Stock Exchange companies were considered.
Indeed, we investigate if revealing the interest information of companies to customers could be helpful and can either decrease the information asymmetry or increase the liquidity.
Sample population was all companies in Tehran Stock Exchange. Forty one companies were selected by Cochrane sampling. Considering sampling limitation, we examined 138 trading suspensions due to revealing the companies interest information including 87 bad news and 51 good ones from 1385 to 1388.
Analysis of Means in SPSS software was used for examining the hypotheses. The results indicate that in 95 per cent confidence interval, in case of bad news all three hypotheses related to usefulness of information, information asymmetry reduction and stock liquidity rising were confirmed. In case of bad news the only confirmed theory was related to increasing of stock liquidity.
Keywords
Earning Information Disclosure
Abnormal Return
Information Asymmetry
Liquidity
Amihud Ratio.