The effect of competition in product market on the relationship between information asymmetry and financial constrains

In the present research we have investigated about the effect of competition in product market on the relationship between information asymmetry and financial constrains. In this study we have used Learner's index and adjusted Learner's index to measure competition in product market and accruals' quality has been used as a criterion to measure information asymmetry. Also KZIR index has been used to measure financial constrains. To answer the research questions, one major and two minor hypotheses were devised, and 100 firms enlisted in Tehran Stock Exchange within the time period between 2007 and 2013 were selected to test the hypotheses. The research method was descriptive and correlation type. Also to test the hypotheses we have used multiple linear regression models with panel data and fixed effects. The research results showed that Learner's index and adjusted Learner's index have had a negative and meaningful effect on the relationship between information asymmetry and financial constrains. Thus, the present research achieved some evidences showing that the main hypothesis was approved claiming that competition in product market affects the relationship between information asymmetry and financial constrains negatively and meaningfully

کلیدواژه ها:

competition in product market ، information asymmetry ، financial constrains