سید حسین میرجلیلی

The ultimate goal of investments in stock markets is to earn a satisfactory return on investment, but this is difficult to achieve without enough information to predict stock returns. Information asymmetry refers to a situation where some investors have access to private information that is not reflected in the prices and is yet to be revealed to others. Information asymmetry as a market failure can lead to adverse effects such as poor investor decisions, increased corporate investment risk, and finally reduced stock returns. The issue is important in capital market of developing countries particularly due to the incomplete voluntary disclosure of information as well as its low quality and defective regulatory system. Therefore, in this study, effect of information asymmetry on stock returns has been investigated in a select group of companies listed in Tehran Stock Exchange. The analysis of this relationship was conducted dynamically for the short-term and long-term using Westerlund and Dumitrescu-Hurlin tests and Generalized Method of Moments to achieve articulated results. Using the tests is suitable with cross-sectional dependence of variables and error terms. Also, using the method is appropriate for measuring lagged effect of dependent variable and removing the bias caused by the endogeneity of explanatory variables. The Results demonstrate a significant relationship between information asymmetry and stock return dynamically in short- and long-run. The results show that there is a negative systemic effect of information asymmetry on stock return. Also, debt to asset, profit to sales, firm size and lagged stock return effects are significant.

After matching a rich micro-level Iranian customs dataset with a macro-level cross-country database on Iranian diaspora stocks, we establish that diaspora matters for dynamics of Iranian exporters. We document the extent to which Iranian emigrants foster exports through both intensive and extensive margins at the micro-level. We show that destinations with more emigrants from Iran attract more Iranian exporters and allow them to survive longer and grow faster. One plausible explanation is that the diaspora channel reduces the fixed cost of exporting that Iranian exporters incur to enter a destination, those related to creating distribution channels, and those associated with learning about market demand. Our results add firm-level insight to the burgeoning literature on the channels through which emigration could impact economic integration. As Iran is now trying to integrate more with the global economy, these results suggest that Iranian embassies across the world have a role to play in bridging the gap between Iranian diaspora and exporters through trade promotion exhibitions and workshops to encourage greater trade between Iran and the rest of the world.