![](local/cache-vignettes/L300xH470/rubon9-59d38.jpg?1724744805)
-
Journal menu
- General information
- Editorial Board and External Reviewers
- Journal Policies
- Publication Ethics and Malpractice Statement
- Instructions for authors
- Paper reviewing
- Article processing charge
- Feedback from stakeholders
- Journal’s Open Access statement
- Order hard copies of the journal
- 50 most cited papers in the journal
HOW DOES CORPORATE VOLUNTARY DISCLOSURE AFFECT ASYMMETRIC INFORMATION AND ADVERSE SELECTION?
Download This ArticleAbstract
This paper investigates whether the extent of corporate voluntary disclosure mitigates asymmetric information and adverse selection in the Euronext Paris stock exchange. We apply a disclosure index as a proxy for the extent of voluntary disclosure and use different spread measures to estimate both asymmetric information and adverse selection. Our findings show a negative relationship between the disclosure index and asymmetric information and adverse selection proxies. An analysis of sub-indexes provides additional mixed results. Several asymmetric information measures are negatively related to the volume of financial, non-financial and voluntary governance information in corporate annual reports. Nevertheless, the effect of strategic information volume is statistically significant only for effective bid-ask spreads. On the whole, these results are consistent with the view that high corporate voluntary disclosure is associated with narrow spreads and low adverse selection costs.
Keywords: Corporate Voluntary Disclosure, Asymmetric Information, Adverse Selection, Annual Reports, France
How to cite this paper: Hamrouni, A., Miloudi, A., & Benkraiem, R. (2015). How does corporate voluntary disclosure affect asymmetric information and adverse selection? Corporate Ownership & Control, 12(2-4), 413-425. https://doi.org/10.22495/cocv12i2c4p1