The Factors Effecting Information Asymmetry in Financial Markets: An Empirical Study on Kurdish Region

Abstract

Recent studies and regulators must focus on this aspect of asymmetric information in the financial markets, as it has become a significant issue affecting investors. Consequently, this article investigates the impact of the lack of transparency in company information and access to pertinent information on the asymmetry of financial market information in the Kurdish region. In addition, the study examines the moderating effect of lack of government support on lack of transparency in company information, lack of access to pertinent information, and asymmetric information regarding financial markets in the Kurdish region. The study collected primary data from investors in the financial markets using survey questionnaires. The article also employed smart PLS to examine the relationship between variables. The results demonstrated that the lack of transparency in company information and access to pertinent information positively correlated with asymmetric information. In the Kurdish region, the lack of government support moderates considerably the lack of transparency in company information, access to relevant information, and asymmetric information regarding financial markets. The article guides policymakers in developing policies to reduce the asymmetric information situation in financial markets by providing transparency in company information and access to pertinent financial market information.