Influence Of Information Asymmetry Research Articles

The effect of strategy, information asymmetry, and incentive scheme on budgetary slack in family business company

Research aims: This research focuses on testing the influence of implementing strategies by the company, the influence of information asymmetry that occurs between parties in the organization, and the incentive system applied in the organization to its employees.Design/Methodology/Approach: Computerized experimental research was conducted using a 2x2x2 mixed-subject research design, where there were two between-subject variables and one within-subject variable. Participants in this research were employees of family business companies involved in preparing the company budget. This test used the ANOVA analysis tool with Repeated Measurement.Research findings: This research provides results that the information asymmetry variable had a positive effect on the emergence of budgetary slack, while the variables of strategy, incentive scheme, and the interaction of each variable have not proven to influence the emergence of budgetary slack.Theoretical contribution/Originality: The experimental findings support the agency problem that arises from information asymmetry.Practitioner/Policy implication: By using practitioners conditioned in specific budgeting situations in experimental budget studies, this research provides practical implications for budgeting problems in business practice. In particular, it provides an overview of the factors that can influence budget gaps, and in this case, a business can condition its efforts in taking advantage of conditions to create the right budget. Apart from that, this research will be able to provide an overview of what treatments can encourage motivation and increase opportunities for the tendency to create budget slack.Research limitation/Implication: This study was limited to certain company sectors, and there is the possibility of a gap in understanding and interpreting the experimental scenario.

Information Asymmetry in Financial Markets: A Theoretical Review of Its Impact on IPO Underpricing

Recent trends have highlighted a significant prevalence of IPO underpricing. The primary focus of this study will be on the influence of information asymmetry on IPO underpricing within the financial market, followed by an analysis of the causes and consequences of this trend. Firstly, it briefly introduces the overview of information asymmetry and links to its importance within the IPO market. Then, it reviews two important concepts from existing literature regarding information asymmetry and IPO underpricing: the market of “lemons” and the herding effect. However, the study does not merely dwell on illustrating these two concepts; it also critically evaluates their limitations while also addresses the pros and cons of IPO underpricing caused by information asymmetry. Finally, it offers potential solutions for the information asymmetry problem to lessen IPO underpricing. The findings and significance of this research are particularly significant for financial market participants and decision-makers, as they help to better address and manage concerns with information asymmetry in financial markets. Through this multi-faceted exploration, the paper aims to unravel avenues that foster transparency, equitable valuation, and sustainable long-term development within the IPO market.

The Application of Deep Reinforcement Learning in Stock Trading Models

Deep Reinforcement Learning (DRL), which integrates the perceptual strength of Deep Learning (DL) with the determination strength of Reinforcement Learning (RL), has emerged as an advanced approach in stock trading. This article focuses on summarizing the research on DRL in stock trading over the past five years, with an emphasis on state definition, action design, reward design, and algorithm selection in stock trading models. Many studies have found that the use of DRL in stock trading can effectively improve investment returns and profitability. In the last years, the adoption of DRL in the stock market has increased and researchers have achieved higher returns and substantial profits through continuous model optimization. However, current research on DRL models faces challenges because of the need for large amounts of complex and uncertain stock market data and the impacts of market volatility and the influence of information asymmetry. This review compares the discrepancies in processing logic among various studies and summarizes the progress made in existing research. It also explores the current challenges and limitations, and discusses potential improvement directions for DRL models in stock trading.

The Influence of Information Asymmetry and Managerial Ownership on the Value of the Company (A Case Study on Manufacturing Companies Listed on the Indonesia Stock Exchange from 2019-2021)

The Influence of Information Asymmetry and Managerial Ownership on the Value of the Company (A Case Study on Manufacturing Companies Listed on the Indonesia Stock Exchange from 2019-2021)

The Influence of Information Asymmetry on the Quality of Corporate Governance

The Influence of Information Asymmetry on the Quality of Corporate Governance

PENGARUH INFORMATION ASYMMETRY, FIRM SIZE, DAN LEVERAGE TERHADAP MANAJEMEN LABA

This study was required with the intention of achieve empirical evidence concerning the Influence of Information Asymmetry, Firm Size, also Leverage on Earnings Management. Sample collection method worn in this study was purposive sampling. Population used in this study are companies in the real estate, property, and building construction sector that are listed on the Indonesia Stock Exchange in 2019-2021 and have published their company's financial statements. Sample for this study is 30 companies over a three periods, making a total sample of 90 data. Based on the yields of the partial test (t test) it shows that information asymmetry (SPREAD) and company size (SIZE) have no significant influence on earnings management. While leverage (DER) has a significant impact on earnings management. So it can be inferenced from the analysis and discussion that information asymmetry has a positive and no significant influence on earnings management, company size has a negative and no significant impact on earnings management, and leverage has a positive and significant impact on earnings management

The Influence of Information Asymmetry, Profitability and Company Size on Earnings Management in Companies in the Goods and Consumption Industry Sector Listed on the Indonesian Stock Exchange for the 2016-2020 Period

This study aims to determine the effect of information asymmetry, profitability and company size on earnings management in companies listed on the Indonesia Stock Exchange for 2016-2020 period. Several previous studies on earnings management have shown different results. Therefore, other studies need to be conducted to re-test the theory of earnings management. The population of this study were 53 companies in the consumer goods industry sub-sector. The sampling method used is the purposive one, so that 22 sample companies are obtained for the five years of monitoring with 86 results (observations). Research data were obtained from sample companies downloaded from the Indonesia Stock Exchange website. The data analysis techniques used are descriptive statistical analysis and multiple regression analysis. The data analysis processes carried out first are descriptive statistics, classical assumption test, multiple regression analysis and then hypotheses testing. The results of this study partially show that only profitability has a significant effect on earnings management, while information asymmetry and company size have no effect on it. The results of this study simultaneously show that information asymmetry, profitability and company size have a significant effect on earnings management.

The influence of information asymmetry on market liquidity: evidence in the Brazilian futures market

The influence of information asymmetry on market liquidity: evidence in the Brazilian futures market

The influence of information asymmetry on market liquidity: evidence in the Brazilian futures market

The influence of information asymmetry on market liquidity: evidence in the Brazilian futures market

Asimetri Informasi, Manajemen Laba, dan Pengungkapan Modal Intelektual Terhadap Biaya Modal Ekuitas (Studi Empiris pada Perusahaan Manufaktur yang Terdaftar di BEI Tahun 2014-2016)

This research was conducted to examine the effect of earnings management, intellectual capital and information asymmetry, on the cost of equity capital. The purpose of this study is to determine and analyze the effect of earnings management, intellectual capital and information asymmetry on the cost of equity capital manufacturing companies listed on the Indonesia Stock Exchange for the period 2014-2016. The population in this study are manufacturing companies listed on the Indonesia Stock Exchange for the period 2014-2016. The sampling technique in this study was purposive sampling. Many of the samples that match the specified criteria are the criteria that are determined as many as 29 companies. Based on the results of the study indicate that: (1) there is no influence of earnings management and intellectual capital against the cost of equity capital (2) there is an influence of information asymmetry on the cost of equity capital

The influence of information asymmetry on the strategic inventory of deteriorating commodity

Strategic inventories are considered a vital bargaining tool for retailers and an essential means to promote supply chain coordination and reduce double marginal benefits. Most previous studies of strategic inventories have been based on two underlying assumptions: the perfect substitution of goods across periods and information symmetry in supply chains. This study examines the far-reaching effects of commodity deterioration and information asymmetry on strategic inventories for a two-period supply chain. In comparing different contracts across various cases, optimal pricing and ordering decisions are determined, and changes in supply chain profits are compared and analyzed. The results show that in the face of deteriorating goods, the manufacturer tends toward a supply chain with asymmetric information. By contrast, the retailer chooses to disclose private information when the deterioration of goods is slow or the holding cost is low. Second, the changes in decision thresholds between the retailer and manufacturer are not synchronous as a result of information asymmetry. In addition, interestingly, both consumer surplus and social welfare tend to have higher product iterations, which is the opposite of the manufacturer's trend. Finally, in terms of supply chain profits, a dynamic contract is always better than a commitment contract when the retailer holds the deteriorating strategic inventory under information asymmetry. Sensitivity analysis is carried out, and relevant managerial insights are provided.

Tri Hita Karana Memoderasi Partisipasi Penyusunan Anggaran, Asimetri Informasi, dan Komitmen Organisasi terhadap Sennjangan Anggaran

This study aims to determine the effect of budgetary participation, information asymmetry and organizational commitment to budgetary slack with the Tri Hita Karana culture as a moderating variable. The analysis technique used is Moderated Regression Analysis. The results showed that budgetary participation and organizational commitment had no significant effect on budgetary slack. Information asymmetry has a positive effect on budgetary slack. The interaction between budgeting participation and the Tri Hita Karana culture is unable to moderate budgetary participation against budgetary slack. The interaction of information asymmetry with the Tri Hita Karana culture is able to weaken the positive influence of information asymmetry on budgetary slack. The interaction between organizational commitment and the Tri Hita Karana culture is unable to moderate organizational commitment to budgetary slack.
 Keywords: Tri Hita Karana; Budgetary Participation; Information Asymmetry; Organizational Commitment; Budgetary Slack.

Analysis of e‐Commerce Characteristics Based on Edge Algorithm and COX Model

With the rapid development of C2C (consumer to consumer) e‐commerce transactions in China, the problem of information asymmetry in C2C e‐commerce transactions is becoming more and more obvious. This paper analyzes the specific performance and influence of information asymmetry in C2C e‐commerce transactions and then proposes a strategy to eliminate information asymmetry in C2C e‐commerce transactions. Based on the perspective of information asymmetry, C2C e‐commerce is taken as the research object, and the research methods such as literature analysis method, qualitative analysis method, and case analysis method are comprehensively used to explore the C2C e‐commerce supervision problem in China under the information asymmetry environment. The reason and countermeasures. Secondly, it analyzes the e‐commerce government supervision theory in detail and studies the definition, content, and principle of e‐commerce government supervision, the necessity of e‐commerce government supervision, and the main forms of e‐commerce government supervision in China. The status of China’s e‐commerce supervision is elaborated, including the question of “who is going to supervise,” “who is supervising,” and “how to supervise.” Aiming at the problems of imperfect legal system in China’s e‐commerce supervision, lack of cross‐departmental coordination mechanism, and difficulty in investigation and evidence collection of e‐commerce illegal behavior, we put forward targeted and operational policy recommendations.

The association between cost-standard setting and work performance: The role of information asymmetry and goal complexity

This paper is an empirical testing of the association between Cost Standard-Setting (PSS) on Work Performance (WP), mediated With Information Asymmetry (IA), and Goal Complexity (GC). It is a rule of thumb that PSS setting can lower the level of IA and GC between the managers and the employees and leads to better WP. The present work uses a path model to measure the direct, indirect, and spurious effect between the dependent and independent variables of this study. Data were collected from ten corporate firms in Iraq via a pre-designed questionnaire survey, the questionnaire forms were distributed randomly to the firm’s top management personnel, departmental managers, engineers, accountants, and administrators who are involved in PSS. Around 350 forms were distributed for data collection, however, only 198 forms were considered for this analysis, the rest of the forms were discarded due to incompleteness or missing values. The findings of the study showed a significant direct effect of PSS on WP. Likewise, there was clear evidence of an indirect effect via the mediating variables (IA and GC). The influence of IA and GC confirms the strong association between the independent variable (PSS) on the dependent variable (WP).

An analysis on fraud tendency of village government officials

This research aims to analyze the influence of information asymmetry, religiosity, organizational culture, and regulatory enforcement toward fraud tendency of village government officials. This study employed a survey approach as the method to obtain data. Regression analysis was used to test the proposed hypotheses. From seventy-one respondents working as village government administrators in thirty-five villages in Magetan Regency, East Java Province, this study has found that information asymmetry, religiosity, organizational culture, and regulatory enforcement significantly affect the village government officials’ tendency to commit fraud.

Information Asymmetry, Price Informativeness and Cost of Capital

This paper examines the relationship between two important financial variables (price informativeness, and cost of capital) and information asymmetry, controlling for the total amount of information in the market. In the model, each investor has a private signal. We measure information asymmetry by the dispersion of the precision of the private signals. By doing so, we can isolate the effect of the total amount of information and focus on the influence of information asymmetry. We show that without the non-learnable component in the asset payoff (residual uncertainty) or transaction cost, information asymmetry will not affect the cost of capital and price informativeness, which is consistent with Lambert and Verrecchia (2015). In contrast, with residual uncertainty or transaction cost, an increase in information asymmetry will decrease price informativeness and increase the cost of capital, even in a fully competitive market. Our results highlight the importance for regulators of alleviating information asymmetry to improve market efficiency.

Influence of information asymmetry on the assessment of a company’s solvency

Introduction. The environment in which enterprises operate in the 21st century is becoming qualitatively different: the intensification of competition in a saturated market leads to an increase in the degree of uncertainty, and hence to the emergence of unpredictable factors. Because uncertainty is a source of risk, it should be minimized by obtaining quality, reliable, comprehensive information. In Ukraine, declaring asymmetric information is done in a completely opposite way than abroad: real property, revenue and profit, on the contrary to developed capitalist countries, are understated to minimize taxation. In both cases, such information asymmetry gives potential investors misconceptions about the solvency of a company and the efficiency of its activities.
 Aim and tasks. To investigate how the presence of information asymmetry in the economic environment affects the assessment of the solvency of economic entities from the perspective of investors. The obtained conclusions will allow to determine what exactly needs to be done in the direction of further improvement of regulatory instruments of state policy in this area.
 Research results. With the growth of information saturation of society and the greater extent of replication and interpretation of source information, it becomes easier to abuse, manipulate information, and to mislead people. Obstructing the rational behavior of economic entities and generating additional costs (information retrieval costs), the asymmetry of information leads to inefficient functioning, and also causes restrictions on competition. The main universal models of investor behavior in a market in the conditions of information asymmetry, which are actually aimed at the inevitability of unexpected and sharp reversals of market conditions (so-called "black swans"), are analyzed.
 Conclusion. A company's financial statements contain information that should be interpreted as asymmetrically distributed information. Approaches based on methods of detecting and accounting for asymmetry in the annual reporting of companies are promising for remedying its negative impact. On the other hand, these approaches must also take into account the fact that in the XXI century, the functions of intermediaries are easily deformed, information technologies are ineffective, and the rules of rational behavior may lead to failure. Therefore, overcoming uncertainty and information asymmetry requires taking into account N. Taleb's approach to the existence of "black swans". Moreover, it is a demand of the present time: in early 2020, the whole world encountered one of these "black swans", namely the global COVID-19 outbreak.

The Influence of Information Asymmetry on IPO Lock-up Provisions: Evidence from Malaysian Market

Most of major shareholders, known as promoters of the firms, are subject to lock-up ratio for a certain period, following their company’s IPO listing. Interestingly, the lock-up ratio among firms vary, suggesting that it serves as a signalling tool to minimize potential conflicts between insiders and uninformed investors. This article investigates the influence of two main factors, that is, underwriter reputation and market capitalization on lock-up ratios. The regression results show that market capitalization, a proxy for firm size, tends to have a positive impact on lock-up ratio while the effect of underwriters’ reputation is weak. The findings also indicate that large firms with quality underwriters (proxied using the interaction of market capitalization and underwriter reputation) have lower information asymmetry and risk, and, therefore, are associated with higher lock-up ratios.

Influence of Information Asymmetry and Self-Efficacy on Budgetary Slack: An Experimental Study

Participation in the budgetary process does not only comes with a positive effect(s) but could also lead to negative behavior(s) of employees, one of which is the creation of budgetary slack. Previous studies said that information asymmetry is rated as one of the causes of the creation of budgetary slack. The purposes of this 3x2 factorial experimental study and between subject designs are to see the effect of information asymmetry on the budgetary slack and see whether information asymmetry and self-efficacy leads to the creation of budgetary slack. This study involved 65 undergraduate and postgraduate students from the accounting department of Economics and Business Faculty in Universitas Airlangga Sura­baya as participants. One way ANOVA and two- way ANOVA is used to test and analyze the proposed hypothesis. Results show that information asymmetry influences the creation of budgetary slack. However, production managers with high or low self-efficacy are still taking advantage of asymmetric information that happened to do budgetary slack.

Pengaruh Asimetri Informasi, Tingkat Leverage dan Ukuran Perusahaan Terhadap Praktik Manajemen Laba

Earnings Management is a phenomenon that is influenced by various factors. Among them are such as information asymmetry, firms size and leverage. In Indonesia, earnings management existing cases of a few years ago. This study aims to investigate the influence of Information Asymmetry, Leverage, and firms size to earnings management practices in the mining sector manufacturing companies listed on the Indonesian Stock Exchange. This study takes the population of the mining sector manufacturing companies listed on the Indonesian Stock Exchange (BEI) 2010-2014. The sampling technique used was purposive sampling method. The analytical method used in this study using multiple linear regression analysis to examine the effect of Information Asymmetry, leverage, and the size of the company as an independent variable, earnings management practices as rhe dependent variable. The results showed that asymmetry of information, leverage, and firms size has effect on earnings management practices in the mining sector manufacturing companies listed in Indonesia Stock Exchange Period 2010-2014