Investigating the effect of web financial reporting on information asymmetry

Information asymmetry in the capital market causes opacity in the trading process and will have undesirable consequences. The purpose of this study is to investigate the effect of web financial reporting on information asymmetry.

In terms of descriptive-correlation type, the present study is a quantitative research based on the nature of the data and causal in terms of temporal dimension. To measure information asymmetry, the model of Chiang and Venkatesh (1986) was used. The statistical population of the research consists of companies listed on the Tehran Stock Exchange in the period 2013-2018 and to test the research hypothesis, a multivariate regression model has been used.

The results of the analysis showed that web-based financial reporting has a negative and significant effect on information asymmetry.

According to the results, in companies listed on the Tehran Stock Exchange, in order to reduce information asymmetry, more attention can be paid to web financial reporting.