This paper examines the association between bid-ask spread, a market based measure of information asymmetry and auditor reputation. Based on a sample of 42 firms over a period from 2000 to 2006, we find that information asymmetry is negatively related to the employment of Big auditor after...

This paper makes three contributions to our understanding of the price discovery process in currency markets. First, it provides evidence that this process cannot be the familiar one based on adverse selection and customer spreads, since such spreads are inversely related to a trade's likely...

This paper investigates the relative magnitude of the components in the bid-ask spread <p> around earnings announcements using the method in Stoll (1989). The results show that <p> earnings surprises convey relevant pricing information and that significant information <p> asymmetry exists between the...</p></p></p>