Can Internet-Based Disclosure Reduce Information Asymmetry?

Jean-François Gajewski () and Li Li
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Jean-François Gajewski: IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc
Li Li: Montpellier Business School

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Abstract: The Internet is widely used by listed companies to manage investor relations. Since January 2007, the French Financial Authority has required companies listed on Euronext-Paris to disclose all mandatory financial information via the Internet in order to enhance information transparency. This paper examines the impact of Internet-based disclosure on the French stock market by analyzing the relationship between information asymmetry and Internet disclosure practices. Extending previous studies on Web-based disclosure, a checklist of 40 items is developed to evaluate the level of Internet-based voluntary disclosure. Measuring information asymmetry by the spread and the probability of informed trading, we show that greater Web-based disclosure lowers information asymmetry in the French financial market.

Keywords: Internet; Information asymmetry; Financial information (search for similar items in EconPapers)
Date: 2015
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01497381v1
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Citations: View citations in EconPapers (6)

Published in Advances in Accounting, 2015, 31 (1), pp.115-124. ⟨10.1016/j.adiac.2015.03.013⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-01497381

DOI: 10.1016/j.adiac.2015.03.013

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