A Study of information asymmetry using Bid-Ask spread on firm value: evidence from Tehran Stock Exchange

ABSTRACT: The aim of this paper is to analyze and to test the influence of the information asymmetry on firm value. To test the research hypotheses, a sample of 47 companies listed in Tehran Stock Exchange over the period 2007-2012 based on pooled method was taken. In these models fixed effects test is estimated. Inference is based on significant level or p-value, thus likely that less than 0.05 is rejected at the 95 percent confidence level. The results show that the information asymmetry has no effects on firm value.