Volume of information and bid/ask spread:

This study seeks to evaluate the effect of volume of information on the bid / ask spread as the representative of information asymmetry phenomenon. Using regression techniques, 40 companies listed in Tehran Stock Exchange during years 2005 to 2012 were selected and examined. Beside bid/asks spread as independent variable and volume of information conveyed to the exchange as the main independent variable we also examine seven other variables as control variables including 1- size 2- grow 3-leverage 4-B/M ratio 5- daily return volatility 6- Beta 7- stock turn-over ratio. The results showed an increase in the volume of information conveyed to the stock exchange by the companies, will significantly decrease bid & ask spread as the representative of information asymmetry. We also find unlike Size, leverage, daily return volatility , other variables including grow, Beta, B/M ratio and stock turn-over ratio does not have a statistically significant effect on information asymmetry

کلیدواژه ها:

bid & ask spread ، volume of information ، information asymmetry