The Corporate Governance and International Standards for Accounting Role in Reducing Information Asymmetry
Dler Mousa Ahmed, Zubir Azhar, Aram Jawhar Mohammad
Asymmetric information has been the significant element in the organization that must be properly addressed for the success of the organization. This aspect needs the emphasis of the recent studies and policymakers. Hence, the present study examines the impact of corporate governance (CG) and International Standards for Accounting (IAS, IFRS) on the asymmetric information of private organization in Iraqi Kurdistan. The study used four dimensions of CG to predict the asymmetric information such as board of directors, audit committee, market mechanism and external audit. The current research has also used the survey method to obtain the primary data from the respondents by using survey questionnaires. The researchers also used the mail method to distribute the survey questionnaires to the selected respondents. The auditors and academics of the selected companies are the respondents of the study. The study also used the smart-PLS to check the data reliability, validity and association among variables. The outcomes revealed that the CG dimensions such as board of directors, audit committee, market mechanism and external audit and IAS, IFRS implementation has reduce the asymmetric information in the organization. This study guides the policymakers in making polices related to reduce the asymmetric information by proper implanting IAS, IFRS and effective CG.
Keywords: International Standards for Accounting, Corporate governance, Board of directors, Audit committee, Market mechanism, External audit, Asymmetric information
