Firm’s Information Environment and Stock Liquidity: Evidence from Tunisian Context

Loukil, Nadia; Yousfi, Ouidad

doi:10.2139/ssrn.1836828

Cited by 5 publications

(5 citation statements)

References 73 publications

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“…Examination of economic consequences of corporate information disclosure has occupied a central role in recent times in accounting and finance research (e.g. Siagian et al , 2013; Loukil and Yousfi, 2012). The rationale behind such research has implications for policy making, most especially, in the standard-setting process (Christensen et al , 2007).…”

Section: Introductionmentioning

confidence: 99%

Intellectual capital disclosure and corporate market value: does board diversity matter?

Anifowose

Rashid

Annuar

2017

JAEE

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Purpose The purpose of this paper is to examine the relationship between IC disclosure and the corporate market value (CMV) of listed firms on the main board of Nigeria Stock Exchange and to test the moderating effect of religious and ethnic composition of board members on the relationship. Design/methodology/approach This study applies the signaling and upper echelons theories in formulating four hypotheses that guide the results analysis. By employing a two-step dynamic system generalized method of moments and controlling for the possible endogeneity effect on the parameters estimated for a sample of 91 listed firms on main board of Nigeria Stock Exchange, this study investigates the association of IC disclosure with CMV, namely, cost of capital and market capitalization, and the moderating role of religious and ethnic composition on such association using data over the 2010 to 2014 financial years. Findings The results show a significant positive relationship between overall IC disclosure and market capitalization and a negative impact on cost of capital, which are in line with the hypothesized propositions. The moderating effect of board diversity is also confirmed. This study contributes to recent evidence concerning the value relevance of IC information to investors and other interested stakeholders and the established moderating role of board diversity in IC disclosure-related studies. Practical implications The regulators may consider development of standards on board composition about religious and ethnic composition in order to curb the domination from same group in the board room. Those charged with governance should be concerned with the disclosure of IC information in the financial statements as it has value relevance to the investors, in line with signaling theory. Social implications The ethnic and religious composition of board members is a significant factor within the board room and needs to be given adequate consideration. Originality/value This study is the first to consider IC disclosure across whole sectors in the Nigerian economy and looks upon ethnicity and religious affiliation of boards as moderating variables. The study controls for heteroscedasticity and endogeneity issues by adopting two-step dynamic system generalized method of moments.

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Section: Introductionmentioning

confidence: 99%

Intellectual capital disclosure and corporate market value: does board diversity matter?

Anifowose

Rashid

Annuar

2017

JAEE

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“…Interestingly, however, using the Tunisian sample, Gana and Chemli (2008) demonstrated the same as observed by Matoussi et al (2004). Loukil and Yousfi (2011), on the contrary, documented no significant association between information asymmetry and the liquidity of the stock.…”

Section: Literature Review and Development Of Hypothesismentioning

confidence: 85%

The Nexus Between Information Asymmetry and Liquidity of Stock: Evidence from the Indian Market

Dutta,

Sen,

Mukherjee

2023

The Indian Economic Journal

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This study intended to explore the influence of informational asymmetry on stock liquidity in India. After controlling for the effects of firm-specific risk and investor sentiment, the results show that informational asymmetry, as measured by the delay factors has a significant positive association with illiquidity, indicating that market liquidity decreases with less transparency and a high level of informational asymmetry. The results also show that investor sentiment has a significant association with illiquidity, whereas firm-specific risk and illiquidity seem to have no noticeable relationship. The empirical results are validated using a dynamic panel-data approach, with two-stage GMM and remain robust. Theoretically, this study extends the existing literature on liquidity by offering new evidence from a prospective market like India. In practical terms, the findings of this study would help the stock exchange regulators and other regulatory bodies to strengthen the process of information dissemination and sensitise market participants and investors by maintaining a smooth flow of information. JEL Codes: G11, G12, G4, G32

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“…Return volatility ( RVOL ) is measured by the standard deviation of daily stock returns (Roulstone, 2003; Iskandrani, 2016; Ajina and Habib, 2017; Al-Jaifi, 2017; Al-Jaifi et al , 2017; Gajewski and Li, 2015). This variable reflects information uncertainty or risk in the capital market (Yoon et al , 2011; Loukil and Yousfi, 2012; Iskandrani, 2016; Gajewski and Li, 2015). Most studies show that high volatility stocks are riskier and, consequently, less liquid (Dumontier and Maghraoui, 2006; Ben Saada et al , 2010; Ajina et al , 2015; Al-Jaifi, 2017).…”

Section: Methodsmentioning

confidence: 99%

“…Voluntary disclosure of the information is a way to mitigate information asymmetry and agency conflicts and deters managers from opportunistic behavior (Loukil and Yousfi, 2012). According to Guidara et al (2014), the timeliness and the extent of voluntary disclosure represent two essential mechanisms of corporate transparency.…”

Section: Background and Hypotheses Developmentmentioning

confidence: 99%

The impact of mandatory adoption of XBRL on firm’s stock liquidity: a cross-country study

Sassi

Othman

Hussainey

2021

JFRA

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Purpose The purpose of this paper is to examine the impact of the mandatory adoption of eXtensible Business Reporting Language (XBRL) on firm’s stock liquidity. Design/methodology/approach Using a random-effects model, this study examines the impact of the mandatory adoption of XBRL (ADOPXBRL) on firm’s stock liquidity of 980 companies pertaining to 13 countries for a period from 2000 to 2016. Findings This paper finds that the mandatory ADOPXBRL affects negatively and significatively Amihud’s (2002) illiquidity ratio. Therefore, mandatory XBRL adoption enhances the firm’s stock liquidity. In addition, this paper finds that the impact of the mandatory ADOPXBRL on firm’s stock liquidity is more pronounced in civil law countries than in common law countries. Originality/value This paper contributes to the literature on the advantage of XBRL especially for the civil law countries by examining the impact of the mandatory ADOPXBRL on firm’s stock liquidity.

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Firm’s Information Environment and Stock Liquidity: Evidence from Tunisian Context

Cited by 5 publications

References 73 publications

Intellectual capital disclosure and corporate market value: does board diversity matter?

Intellectual capital disclosure and corporate market value: does board diversity matter?

The Nexus Between Information Asymmetry and Liquidity of Stock: Evidence from the Indian Market

The impact of mandatory adoption of XBRL on firm’s stock liquidity: a cross-country study

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