Department of Accounting, Qazvin Branch, Islamic Azad University, Qazvin, Ira
Online published on 30 September, 2013.
In present research effect of management earnings on information asymmetry is addressed in Tehran Securities Exchange. In order to calculate information asymmetry, bid-ask spread during period of 21 days before to 21 days after actual earnings announcement and forecast earnings announcement was used as information asymmetry measure. The studied sample consisted of 300 cases of earnings announcements related to 60 firms listed in Tehran Securities Exchange during 2006–2010. Findings from present research show that during the study period information asymmetry decreased after actual earnings announcement and forecast earnings announcement and on the other hand there was a significant relationship between information asymmetry and earnings forecast error.
information asymmetry, bid-ask spread, adverse selection, earnings announcements
