Information asymmetry and financing decisions

This study explores the relationship between information asymmetry and financing decisions of firms. The sample data includes 598 public-listed firms in Bursa Malaysia, over the sample period from 2005 until 2010. This study relies on firm-level of information, focusing in business context. Informat...

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Main Author: Su, Hui Ling
Format: Final Year Project Report / IMRAD
Language:English
Published: Universiti Malaysia Sarawak, (UNIMAS) 2012
Subjects:
Online Access:http://ir.unimas.my/id/eprint/10184/
http://ir.unimas.my/id/eprint/10184/4/Su%20Hui%20Ling%28fulltext%29.pdf
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author Su, Hui Ling
author_facet Su, Hui Ling
author_sort Su, Hui Ling
building UNIMAS Institutional Repository
collection Online Access
description This study explores the relationship between information asymmetry and financing decisions of firms. The sample data includes 598 public-listed firms in Bursa Malaysia, over the sample period from 2005 until 2010. This study relies on firm-level of information, focusing in business context. Information asymmetry is defined as the imbalance amount of information gained between the insiders' management and the outsiders' investor. This study concludes that firms' size, corporate leverage and financial slack could influence the level of information gained among parties. The result and findings in this study shows that total assets has the strongest relationship with the information asymm~try. In addition, total assets could represent internal financing of a firm. The relationship is then followed by financial slack and corporate leverage, respectively. These findings are somehow consistent with the assumption of pecking order theory, showing the preference of firm in deciding to apply internal financing.
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format Final Year Project Report / IMRAD
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institution Universiti Malaysia Sarawak
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language English
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publishDate 2012
publisher Universiti Malaysia Sarawak, (UNIMAS)
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spelling unimas-101842024-02-08T03:52:36Z http://ir.unimas.my/id/eprint/10184/ Information asymmetry and financing decisions Su, Hui Ling HC Economic History and Conditions This study explores the relationship between information asymmetry and financing decisions of firms. The sample data includes 598 public-listed firms in Bursa Malaysia, over the sample period from 2005 until 2010. This study relies on firm-level of information, focusing in business context. Information asymmetry is defined as the imbalance amount of information gained between the insiders' management and the outsiders' investor. This study concludes that firms' size, corporate leverage and financial slack could influence the level of information gained among parties. The result and findings in this study shows that total assets has the strongest relationship with the information asymm~try. In addition, total assets could represent internal financing of a firm. The relationship is then followed by financial slack and corporate leverage, respectively. These findings are somehow consistent with the assumption of pecking order theory, showing the preference of firm in deciding to apply internal financing. Universiti Malaysia Sarawak, (UNIMAS) 2012 Final Year Project Report / IMRAD NonPeerReviewed text en http://ir.unimas.my/id/eprint/10184/4/Su%20Hui%20Ling%28fulltext%29.pdf Su, Hui Ling (2012) Information asymmetry and financing decisions. [Final Year Project Report / IMRAD] (Unpublished)
spellingShingle HC Economic History and Conditions
Su, Hui Ling
Information asymmetry and financing decisions
title Information asymmetry and financing decisions
title_full Information asymmetry and financing decisions
title_fullStr Information asymmetry and financing decisions
title_full_unstemmed Information asymmetry and financing decisions
title_short Information asymmetry and financing decisions
title_sort information asymmetry and financing decisions
topic HC Economic History and Conditions
url http://ir.unimas.my/id/eprint/10184/
http://ir.unimas.my/id/eprint/10184/4/Su%20Hui%20Ling%28fulltext%29.pdf