The effects of global financial crisis on information asymmetry and stock price of firms accepted in stock exchange in Iran

Abstract

The global economy has always been encountering different economic crises which have affected financial variables. The global financial crisis started in the United States by the boom in house prices and reached its highest amount when some of the banks encountered bankruptcy in financial markets and then it permeated into Stock Exchanges. Although Iran incurred the least damages at the start of the global crisis due to its status in financial issues, the economic relationships between Iran and foreign countries through exports can lead to the transmission of the dangerous outcomes of the global economic crisis into the country. The goal of the present research is to study the effects of the global financial crisis on information asymmetry and stock prices of 133 companies accepted in Stock Exchanges in Iran after the use of sifting method for the years between 2004 and 2011. The research method is a descriptive one and the variables were tested by using a statistical technique. The findings of the research show that there is a meaningful difference between stock prices and information asymmetry before and after the global economic crisis on firms in different industries in Iran.