THE ROLE OF ASYMMETRIC INFORMATION IN SHAPING INVESTMENT STRATEGIES: IMPLICATIONS FOR FINANCIAL MARKET STABILITY
Asymmetric information, where one party has more or worse information than another, significantly impacts financial markets. This study examines how information asymmetry shapes investment strategies and its implications for financial market stability. We explore the theoretical underpinnings of asy...
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| Format: | Article |
| Language: | Arabic |
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University of Kufa, Faculty of Administration and Economics
2024-12-01
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| Series: | مجلة الغري للعلوم الاقتصادية والادارية |
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| Online Access: | https://journal.uokufa.edu.iq/index.php/ghjec/article/view/17548 |
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| _version_ | 1846100427460837376 |
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| author | يوسف أدينيي جاميو أفولابي لقمان أولاجيد أولودويي إسحاق أولاكونلي |
| author_facet | يوسف أدينيي جاميو أفولابي لقمان أولاجيد أولودويي إسحاق أولاكونلي |
| author_sort | يوسف أدينيي جاميو |
| collection | DOAJ |
| description | Asymmetric information, where one party has more or worse information than another, significantly impacts financial markets. This study examines how information asymmetry shapes investment strategies and its implications for financial market stability. We explore the theoretical underpinnings of asymmetric information using Principal-Agent Theory and the Efficient Market Hypothesis (EMH). The empirical analysis, using secondary data from 2000-2020, reveals a positive correlation between asymmetric information and market instability, while market liquidity has a negative correlation. The findings highlight the importance of mitigating information asymmetry to promote stable financial markets. Policy recommendations include stricter disclosure requirements, investment in transparency technologies, and investor education programs.
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| format | Article |
| id | doaj-art-20ebcc2f104d462b8aa8a8e7f2dcf337 |
| institution | Kabale University |
| issn | 3006-1911 3006-192X |
| language | Arabic |
| publishDate | 2024-12-01 |
| publisher | University of Kufa, Faculty of Administration and Economics |
| record_format | Article |
| series | مجلة الغري للعلوم الاقتصادية والادارية |
| spelling | doaj-art-20ebcc2f104d462b8aa8a8e7f2dcf3372024-12-30T08:19:49ZaraUniversity of Kufa, Faculty of Administration and Economicsمجلة الغري للعلوم الاقتصادية والادارية3006-19113006-192X2024-12-0120410.36325/ghjec.v20i4.17548THE ROLE OF ASYMMETRIC INFORMATION IN SHAPING INVESTMENT STRATEGIES: IMPLICATIONS FOR FINANCIAL MARKET STABILITYيوسف أدينيي جاميو0أفولابي لقمان أولاجيد1أولودويي إسحاق أولاكونلي2Fountain University, Osogbo Foremost Capital Limited, AbujaIsaacolakunle4@gmail.com Asymmetric information, where one party has more or worse information than another, significantly impacts financial markets. This study examines how information asymmetry shapes investment strategies and its implications for financial market stability. We explore the theoretical underpinnings of asymmetric information using Principal-Agent Theory and the Efficient Market Hypothesis (EMH). The empirical analysis, using secondary data from 2000-2020, reveals a positive correlation between asymmetric information and market instability, while market liquidity has a negative correlation. The findings highlight the importance of mitigating information asymmetry to promote stable financial markets. Policy recommendations include stricter disclosure requirements, investment in transparency technologies, and investor education programs. https://journal.uokufa.edu.iq/index.php/ghjec/article/view/17548Asymmetric information, investment strategies, financial market stability, information disclosure, market efficiency |
| spellingShingle | يوسف أدينيي جاميو أفولابي لقمان أولاجيد أولودويي إسحاق أولاكونلي THE ROLE OF ASYMMETRIC INFORMATION IN SHAPING INVESTMENT STRATEGIES: IMPLICATIONS FOR FINANCIAL MARKET STABILITY مجلة الغري للعلوم الاقتصادية والادارية Asymmetric information, investment strategies, financial market stability, information disclosure, market efficiency |
| title | THE ROLE OF ASYMMETRIC INFORMATION IN SHAPING INVESTMENT STRATEGIES: IMPLICATIONS FOR FINANCIAL MARKET STABILITY |
| title_full | THE ROLE OF ASYMMETRIC INFORMATION IN SHAPING INVESTMENT STRATEGIES: IMPLICATIONS FOR FINANCIAL MARKET STABILITY |
| title_fullStr | THE ROLE OF ASYMMETRIC INFORMATION IN SHAPING INVESTMENT STRATEGIES: IMPLICATIONS FOR FINANCIAL MARKET STABILITY |
| title_full_unstemmed | THE ROLE OF ASYMMETRIC INFORMATION IN SHAPING INVESTMENT STRATEGIES: IMPLICATIONS FOR FINANCIAL MARKET STABILITY |
| title_short | THE ROLE OF ASYMMETRIC INFORMATION IN SHAPING INVESTMENT STRATEGIES: IMPLICATIONS FOR FINANCIAL MARKET STABILITY |
| title_sort | role of asymmetric information in shaping investment strategies implications for financial market stability |
| topic | Asymmetric information, investment strategies, financial market stability, information disclosure, market efficiency |
| url | https://journal.uokufa.edu.iq/index.php/ghjec/article/view/17548 |
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