Authors : Iman Heydari, Seyed Mohammad Nabi Hashemi and Hossein Shokrani
Abstract: In the present research we have investigated about the effect of information asymmetry on financial constraints. In this study we have used accruals quality and bid-ask spreadas a criterion to measure information asymmetry. Also KZIR index has been used to measure financial constraints. To answer the research questions, one main and two sub-hypothesis were devised and 130 firms enlisted in Tehran Stock Exchange within the time period between 2009 and 2014 were selected to test the hypotheses. The research method was descriptive and correlation type. Also to test the hypotheses we have used multiple linear regression models with panel data and fixed effects. The research results showed that accruals quality and bid-ask spread have had a positive and meaningful effect on financial constraints. Thus, the present research achieved some evidences showing that the main hypothesis was approved claiming that information asymmetry have had a positive and meaningful effect on financial constraints.
Iman Heydari, Seyed Mohammad Nabi Hashemi and Hossein Shokrani, 2016. The Effect of Information Asymmetry on Financial Constraints of Listed Firms on Tehran Stock Exchange. International Business Management, 10: 3422-3426.