Information Asymmetry as Moderator between Capital Structure and Stock Market Liquidity in Pakistan

Abstract

ABSTRACT

The purpose of this endeavor is to analyze pre and post moderation effect of information asymmetry (I.A) between capital structure (C.S) and stock market liquidity (M.L) in the top populous textile & food sectors of Pakistan stock exchange during 2008-2019. The available data of 160 sample companies through convenient sampling have been picked among the total 210 firms of the sample sectors while analysis was done via Gretel.  There is clear distinction between the pre-& post-moderation results applying I.A as a moderator. Both t-values and p-values show highly significant results of post-moderation effect of I.A as compare to pre-moderation effect of the I.A between C.S and M.L. The findings of the study are in line with agency theory while adding some fruitful literature to the existing literature in the relevant field of studies