Investigating Relationship between Information Asymmetry with Financial Leverage and Firm value in Tehran Stock Exchange

Information asymmetry has been emerged as one the most important academic research subjects in recent years. Information asymmetry in the capital market will lead to non-transparency in the trend of transactions and will result in adverse consequences, including increased transaction costs, low liquidity and market weakness. Factors such as information asymmetry, company leverage, firm size, dividend ratio, free float, and company growth opportunities affects value of companies listed in the stock exchange. In this research, the relationship between information asymmetry and financial leverage and the companies value in the companies listed in Tehran Stock Exchange was studied. The present research is a part of applied research in terms of type of purpose and is correlated in terms of content and content.In this paper, the aim is to determine the relationship between information asymmetry and financial leverage and the value of the company in the companies listed in the Tehran Stock Exchange. The statistical population of this paper is the companies accepted in the Tehran Stock Exchange during the period of 2010-2016, which are 145 companies. Dynamic panel method was used to estimate the model. The results of model estimation indicated that the coefficients of information asymmetry variables, financial leverage, and firm size, apparent assets and annual sales growth were significant at 95% confidence level be.

Keywords:

Information asymmetry , financial leverage , firm size , firm value , GMM PANEL