The Impact of Information Asymmetry on the Quality of the Stock Market Companies

Information asymmetry is one of the main challenges that managers are dealing with today. Despite the rules relating to the disclosure of financial information by business unit, all this information will not be distributed in a balanced way in the financial markets having many adverse consequences. On the other hand, the philosophy of the secondary market development is the efficient transfer of funds between providers and users. To achieve this goal, the companies’ stock should have trade potential and the necessary quality. According to many experts in the financial field, the most important factor that affecting the quality of the stock market, is the information asymmetry. The aim of this study is to investigate the effect of information asymmetry on the companies’ quality stock market listed on Tehran Stock Exchange. To answer the aforementioned question, statistical population including 154 firms listed in Tehran Stock Exchange, in the period of 1384 to 1392 was selected. Also, aspects of this impact were investigated using structural equation modeling techniques PLS. The results showed that information asymmetry and its aspects on the companies’ stock market quality listed in Tehran Stock Exchange had a negative impact.