Moderator Role of Financial Leverage in the Relationship of Asymmetric Information and Firm Value: An Application on BIST (Asimetrik Bilgi ve Firma Değeri İlişkisinde Finansal Kaldıracın Düzenleyici Rolü: BİST Üzerine Bir Uygulama)

Tugba Nur and Turhan Korkmaz
Additional contact information
Tugba Nur: Sirnak University
Turhan Korkmaz: Mersin University

Business and Economics Research Journal, 2022, vol. 13, issue 3, 449-463

Abstract: This study aims to investigate the relationship between asymmetric information and firm value in companies traded in Borsa Istanbul (BIST) Food and Retail sector and whether financial leverage has a moderator role in the relationship between asymmetric information and firm value by panel data analysis method. The asymmetric information variable was measured with the analyst forecast distribution, analyst forecast error, and the dummy variable, which is formed according to the analysts' estimates of returns per share, whether the distribution is greater or less than the median forecast of the sector. In order to investigate whether the financial leverage variable has a moderator role in the effect of asymmetric information on firm value, moderator variables such as asymmetric information x financial leverage were created. As a result of the analyzes carried out for the period of 10.06.2019-28.03.2022 using weekly data, it has been determined that asymmetric information negatively affects firm value and financial leverage has a limited moderator role on this effect. Although the findings obtained in the study are important for the decisions to be made by current and potential shareholders and managers, it can be said that the limited moderator role of financial leverage on asymmetric information should be taken into account.

Keywords: Asymmetric Information; Firm Value; Financial Leverage; Panel Data Analysis; BIST (search for similar items in EconPapers)
JEL-codes: C33 G32 (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.berjournal.com/tr/moderator-role-of-fi ... -application-on-bist Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:buecrj:0605

Access Statistics for this article

Business and Economics Research Journal is currently edited by Adem Anbar

More articles in Business and Economics Research Journal from Uludag University, Faculty of Economics and Administrative Sciences Contact information at EDIRC.
Bibliographic data for series maintained by Adem Anbar ().