عنوان مقاله [English]
This article investigated the role of competition in the pricing of information asymmetry. the competition between investors for acquire private information lead to prices become more informative and near to intrinsic values. Trying informed investors to acquire private information and trade to earn more gain lead to information incorporate into prices more quickly. then increase competition influences cost of equity capital.
The literature have shown that institutional investors are more likely to be informed investors. relying on existing literature, this study investigates the effect of competition between informed investors over information on the pricing of information asymmetry. the sample includes 550 firm-years data of 89 firm listed in Tehran Stock Exchange from 1382 to 1390. The findings based on multiple regression models based on cross-sectional data show that when the number of institutional investors, as a proxy for competition, increases, the pricing of information asymmetry decreases.The results do not confirm existence of a significant effect of concentration of institutional investor ownership, as another proxy for competition in this study, on the pricing of information asymmetry.