The Effect of Board Gender Diversity on the Information Asymmetry for the companies listed on Tehran Stock Exchange

Document Type : Research Paper

Authors

• sharareh majdzadeh tabatabaei ¹
• gholamreza rezaei ²
• faezeh zrinkolah ³

¹ Faculty member of Islamic azad university

² Islamic azad university

³ Islamic Azad University, Marvdasht Branch

Abstract

Empirical evidence suggests that the presence of women in the board increases the quantity and quality of public disclosure. In this regard, the expectation is that increasing the gender diversity in the board of directors will reduce information asymmetry. Therefore, the present study sought to use data about the companies listed in Tehran Stock Exchange. The statistical sample includes 173 companies that have been accepted in Tehran Stock Exchange between 2007 and 2016. Linear regression analysis of panel data was used to test statistical hypotheses. The results of the research show that there is a negative relationship between the gender diversity shown by the presence of women in the composition of the board and the information asymmetry based on the price gap and size of the company. The overall result of this research suggests that if monitoring tools, such as the presence of women in the composition of the board, are desirable and in line with the principles raised in this research, can reduce the information asymmetry.

Keywords

• Gender diversity
• Information asymmetry
• Price gap

20.1001.1.20088566.1398.10.40.14.9

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