سید حسین میرجلیلی

The ultimate goal of investments in stock markets is to earn a satisfactory return on investment, but this is difficult to achieve without enough information to predict stock returns. Information asymmetry refers to a situation where some investors have access to private information that is not reflected in the prices and is yet to be revealed to others. Information asymmetry as a market failure can lead to adverse effects such as poor investor decisions, increased corporate investment risk, and finally reduced stock returns. The issue is important in capital market of developing countries particularly due to the incomplete voluntary disclosure of information as well as its low quality and defective regulatory system. Therefore, in this study, effect of information asymmetry on stock returns has been investigated in a select group of companies listed in Tehran Stock Exchange. The analysis of this relationship was conducted dynamically for the short-term and long-term using Westerlund and Dumitrescu-Hurlin tests and Generalized Method of Moments to achieve articulated results. Using the tests is suitable with cross-sectional dependence of variables and error terms. Also, using the method is appropriate for measuring lagged effect of dependent variable and removing the bias caused by the endogeneity of explanatory variables. The Results demonstrate a significant relationship between information asymmetry and stock return dynamically in short- and long-run. The results show that there is a negative systemic effect of information asymmetry on stock return. Also, debt to asset, profit to sales, firm size and lagged stock return effects are significant.

THE WBG INVOLVED IN ISLAMIC FINANCIAL SERVICES AS CLIENT REQUESTED, AND IN ORDER TO COMPLEMENT CONVENTIONAL ONE, SUPPORT ECONOMIC DEVELOPMENT AND POVERTY ALLEVIATION, EXPAND ACCESS TO FINANCE, ENHANCE FINANCIAL STABILITY AND BENEFITING FROM GROWING ISLAMIC FINANCIAL ASSETS. AREAS OF WBG INVOLVEMENT WERE CAPACITY BUILDING IN GOVERNANCE AND RISK MANAGEMENT ACCOUNTING ISSUES, REGULATIONS AND PRODUCT DEVELOPMENT, AND FOR FINANCIAL INCLUSION, AND IMPROVING LEGAL AND INSTITUTIONAL FRAMEWORK OF ISLAMIC FINANCIAL INSTITUTIONS AS WELL. THE WBG ALSO STRUCTURED ISLAMIC FINANCE PRODUCTS FOR FINANCING PROJECTS FOR MUSLIM COMMUNITIES AND PROVIDED GUARANTEES FOR SUPPORTING ISLAMIC FINANCE TRANSACTIONS. THE WBG IS ALSO INVOLVED IN ISSUING SUKUK FOR RAISING FUNDS FOR DEVELOPMENT PROGRAMS. THE WBG INVOLVEMENT WAS PRODUCTIVE AND PROMOTED ISLAMIC FINANCIAL SERVICES AS A COMPLEMENTARY TO THE CONVENTIONAL ONE.