The study focuses on the causes and consequences of information asymmetry. Using a sample of 180 Malaysian manufacturing firms, the findings show that insiders and industrial competition contribute to the problem of information asymmetry. The presence of large shareholders as insiders in low...

Using 180 manufacturing firms from 1998 to 2004, the paper proves that insiders with controlling interest more than 36.78% increase earnings management (discretionary accruals) by 10.6%. However, they are risk-adverse and avoid inefficient investment after the financial crisis. On the other...