information asymmetry


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Information asymmetry

Condition that information is known to some, but not all, participants.

information asymmetry

see ASYMMETRY OF INFORMATION.
References in periodicals archive ?
These firms have unique characteristics such as low agency costs and less information asymmetry (Jensen, 1976); high quality reporting practice (Stein, 1988), complex pyramid structures, majority of board members from the same family, inter-lock directorship, voting pacts, cross shareholdings, and/or dual class voting shares that allow the ultimate owner to maintain (voting) control while owning a small fraction of ownership (Javid, 2012).
In this article, which later earned him Nobel Laureate in economics, he analyzed the consequences of information asymmetry in certain markets.
The internet nature of crowdfunding platforms allows them to employ certain mechanisms to mitigate information asymmetry.
Part II of the article argues that this income disparity makes it difficult for financial regulatory agencies to hire competitively, thereby creating an information asymmetry between regulators and industry.
This has naturally brought on the need for a global approach to local real estate, not least of all in terms of better information resources, the kind of business transparency that international investors expect and the ability to decipher information asymmetry via empirical investment research.
Information asymmetry can have several adverse consequences, such as reduction of market efficiency, increase in transaction costs, market weakness, increase in shareholder's income, low liquidity and generally reduction of the transactions' profit in capital market [22].
In George Akerlof's seminal paper "The Market for Lemons," he noted that markets can fail when information asymmetry is too high.
At this stage of the research project, the respondents were asked to rank the risk-minimization strategies presented above in terms of their importance in reducing information asymmetry (Appendix).
The pecking order theory states that financing behaviour of a firm follows a pecking order because information asymmetry costs are different for different sources of funds [Myers (1984)].
2012) show that foreign banks that enter via greenfield investment, and hence face an acute information asymmetry about potential borrowers, lend more in foreign currency than do foreign banks that take over existing local banks (that have established relationships with local firms).
Current study therefore, by using sample data of 55 IPOs listed on KSE for the period of 2000 to 2011 examined the moderating effect of corporate governance on the relationship of information asymmetry and level of under-pricing.
Topics of these nine essays include analyzing whether assortment variety is too much of a good thing, critically reviewing consumer experience and experiential marketing, reviewing empirical evidence of customer reactions to conflict management from two service industries, designing and pricing digital content products and services, analyzing information asymmetry in a competitive market, integrating the multiple dimensions of country-of-origin effects, changing the architecture of global firms, researching audio and visual applications in marketing, and measuring value-in-context from a service-dominant perspective.

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