Cuadernos de Economía

ISSN : 0210-0266
Untitled-43

The Factors Influencing on Information Asymmetry Estimate by Total Trading Volume

  • Pathomchai Kornlert , School of Accountancy, Sripatum University, Thailand
  • Daranee Uachanachit , School of accountancy, Sripatum University, Thailand

Keywords:

Information Asymmetry; Total Trading Volume; Corporate Governance; Financial Reporting Disclosure Quality; Earning Management; Dividend Payment. ,

Abstract

Numerous factors can contribute to the volume of stock trading being volatile. The unusual stock trading volume before or after the financial statement date indicates information asymmetry in the investment in such securities. The stock price may become volatile due to those who have access to the information earlier or more. This study's goal was to investigate and examine the variables affecting the information asymmetry measured by stock trading volume. This study is quantitative. The financial industry group was excluded from the sample group because of its unique presentation compared to the other industries, which included 301 companies listed on the Stock Exchange of Thailand from a total of 7 industries. Path Analysis was used to gather the data from 2015 to 2019. Good corporate governance and Financial Reporting Disclosure Quality are the factors that affect information asymmetry when it is measured by Trading Volume, and they have a negative direct impact on the information asymmetry. Transparency is influenced by structured corporate governance, meanwhile. The management of dividend payments and earnings directly and positively impacts the trading volume-based measure of information asymmetry.