Governance Quality and Information Alignment | Zendy

Ahmed Elbadry | Zendy; Dimitrios Gounopoulos | Zendy; Frank S. Skinner | Zendy

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Governance Quality and Information Alignment

Author(s) -

Ahmed Elbadry,

Dimitrios Gounopoulos,

Frank S. Skinner

Publication year - 2010

Publication title -

ssrn electronic journal

Language(s) - English

Resource type - Journals

ISSN - 1556-5068

DOI - 10.2139/ssrn.1537693

Subject(s) - corporate governance , quality (philosophy) , business , information governance , information quality , process management , computer science , political science , information system , management information systems , law , finance , philosophy , epistemology

We examine the effect of corporate governance mechanisms on asymmetric information. Using a sample of 392 non-financial UK companies listed in the London Stock Exchange we find that board independence, performance related executive compensation, the number of insiders and leverage are significantly negatively related to asymmetric information whereas the percentage of insider ownership and block ownership are significantly positively related to asymmetric information. The results suggest that UK companies have a high degree of compliance with the combined code on corporate governance and as a result mitigate asymmetric information while contributing towards resolving agency problems.

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