• ISSN(P) : 2708-2474
  • ISSN(E) : 2708-2482
  • ISSN(L) : 2708-2474

Article

 

The Moderating Role of Information Asymmetry in the Relationship between Stock Market Liquidity and Institutional Investors: A Case of Textile Sector in Pakistan Stock Exchange

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Abstract

The study focused on the moderation role of information asymmetry (IA) that plays a vital role between Stock market liquidity (SML) and Institutional investors (I.I) in textile sector of Pakistan stock exchange (PSX). Among total population of 155 companies, a sample of 150 textile companies is chosen with the help of convenient sampling technique for a period of 10 years (2009-2018). The results of Pre-moderation panel data regression analysis show that there is insignificant effect of I.I on SML while size (SZ), leverage (LEV) and growth (GR) have significant effect on SML. Further, post-moderation effect of IA, which is the uniqueness of the study, indicates a stronger significant effect of SZ, LEV and GR on SML as compare to pre-moderation regression results, which evident that IA do has a significant role between explanatory variables and SML. The results of the study are supporting the signaling theory on the base of moderation of IA that increases the significance level between I.I and SML.

Authors

1-Muhammad Arif
Assistant Professor Department of Management Sciences, University of Swabi, KP, Pakistan.

Keywords

Moderation, Information Asymmetry, Size of Firm, Growth, Textile Sector

DOI Number

10.31703/gmsr.2019(IV-I).02

DOI Link

http://dx.doi.org/10.31703/gmsr.2019(IV-I).02

Page Nos

10-18

Volume & Issue

IV - I


Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Published: Dec 2019

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