The Impact of the Board’s Characteristics on the Relationship between the Asymmetry of Information and the Fair Value of the Share in Jordanian Commercial Banks
Year : 2020-12-04
Faculty : Business
Author : هيثم ادريس محمد المبيضين /
Abstarct :
ABSTRACT This study aimed to know the impact of the characteristics of the Board of Directors on the relationship between the asymmetry of information and the fair value of the shares in Jordanian commercial banks. To achieve the objective of the study, it is necessary to know the effect of the asymmetry of information on the decisions of current and future shareholders and investors, and then to study the effect of the characteristics of the board of directors on the fair value of the share. For this reason, the method of analyzing time-series analysis (Panel Data) has been used, based on a sample of 13 Jordanian commercial banks listed in the Amman Financial Market. The study period is 2015-2019, and four banks were excluded for failing to meet the study conditions. The study was based on two models; the first one aimed to examine the effect of the relationship between asymmetric information and the fair value of the share, while the second model aims to study the relationship between the effect of the characteristics of the Board of Directors on the relationship between asymmetry of information and fair value. It was found that there is a problem of information asymmetry among investors in commercial banks, and the level of asymmetry was different from one bank to another and from year to year. The problem of information asymmetry is caused by the failure to deliver financial information to all parties in a timely manner. The most important recommendations Independent board members should be increased because of their positive impact on the relationship between information asymmetry and fair value, The need to increase the number of females on the boards of directors of Jordanian commercial banks to increase gender diversity and make the decisions of the boards of directors more indicative. Keywords: Characteristics of Board of Directors, asymmetry of information, Fair Value
Year : 2020-12-04
Faculty : Business
Author : هيثم ادريس محمد المبيضين /
Abstarct :
ABSTRACT This study aimed to know the impact of the characteristics of the Board of Directors on the relationship between the asymmetry of information and the fair value of the shares in Jordanian commercial banks. To achieve the objective of the study, it is necessary to know the effect of the asymmetry of information on the decisions of current and future shareholders and investors, and then to study the effect of the characteristics of the board of directors on the fair value of the share. For this reason, the method of analyzing time-series analysis (Panel Data) has been used, based on a sample of 13 Jordanian commercial banks listed in the Amman Financial Market. The study period is 2015-2019, and four banks were excluded for failing to meet the study conditions. The study was based on two models; the first one aimed to examine the effect of the relationship between asymmetric information and the fair value of the share, while the second model aims to study the relationship between the effect of the characteristics of the Board of Directors on the relationship between asymmetry of information and fair value. It was found that there is a problem of information asymmetry among investors in commercial banks, and the level of asymmetry was different from one bank to another and from year to year. The problem of information asymmetry is caused by the failure to deliver financial information to all parties in a timely manner. The most important recommendations Independent board members should be increased because of their positive impact on the relationship between information asymmetry and fair value, The need to increase the number of females on the boards of directors of Jordanian commercial banks to increase gender diversity and make the decisions of the boards of directors more indicative. Keywords: Characteristics of Board of Directors, asymmetry of information, Fair Value