Voluntary disclosure, information asymmetry and the perception of governance quality: An analysis using a structural equation model

This study analyzes the direct and indirect relation between the governance rules and information asymmetry, through the voluntary disclosure and organizational performance, using Iberian Peninsula listed companies. The results show that for firms with high levels of disclosure the bid–ask spread is lower. However, in firms with a high ownership concentration investors tend to increase the bid–ask spreads and trade less. The results show us how the governance rules exert influence on the proxies of information asymmetry in the market. The failure to find the relationship between voluntary disclosure of information and the turnover ratio shows us that the liquidity of shares is more related to the greater or lesser concentration of shareholders, with the performance of their companies than with the access to information. Moreover, it is clear that the role that information disclosure plays in these markets is mainly at the level of price formation.